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Oil falls to $77 a barrel on concerns about increased supply this year

2024-06-04 13:52:00, Ekonomi CNA
Oil falls to $77 a barrel on concerns about increased supply this year
Illustrative photo

Oil prices fell more than $1, extending losses from a four-month low in the previous session, as investors worried about increased supply later in the year amid signs of weakening US demand.

Brent crude futures fell 1.14 cents, or 1.5%, to $77.22 a barrel. Brent, the day before, closed below $80 for the first time since February 7, after falling more than 3%.

West Texas Intermediate (WTI) crude futures rose 1.23 cents, or 1.7%, to $72.99 a barrel. WTI, a day earlier, fell 3.6%, settling near a four-month low.

The Organization of the Petroleum Exporting Countries and its allies, led by Russia, known as OPEC+, agreed on Sunday to extend most of the oil production cuts until 2025, but left room for the cuts to voluntary, of eight members, to be phased out starting from October.

"The market reaction is depressing for anyone who produces oil, and brings great joy to consumers," said Tamas Varga, from oil brokerage PVM.

Increased supply from OPEC+ could jump into a market where demand has already shown signs of weakness.

U.S. manufacturing activity slowed for a second month in a row in May, while construction spending unexpectedly fell for a second month in April as non-residential activity fell — both of which could translate into stronger demand. weak for oil and fuel.

Signs of weakening demand have weighed on oil prices in recent months, with US fuel consumption data in focus. The average price of gasoline in the United States fell 5.8 cents a gallon to $3.50 a gallon on Monday, according to GasBuddy data./Monitor Magazine





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