Decrease in Oil Prices Reported by Report.az
Oil Prices Dip as OPEC+ Plans Gradual Production Increase
The price of May Brent futures on the London ICE Futures exchange has dipped to $73.4 per barrel as of 09:14 (GMT+4), marking a decrease of $0.23 (0.31%) from the previous close of trades. On March 22, these contracts fell by $0.4, reaching $73.63 per barrel. The May futures are set to expire at the end of the market on March 31, while the more actively traded June contracts are also falling in price by $0.26 (0.36%), reaching $72.5 per barrel.
Simultaneously, WTI oil futures for May on electronic trading on the New York Mercantile Exchange (NYMEX) have decreased by $0.3 (0.43%), to $69.06 per barrel. In the previous session, the price of these contracts dropped by $0.56, touching $69.36 per barrel.
The current oil prices are facing pressure due to expectations of increased production by OPEC+ countries and concerns about the repercussions of import duties imposed by the United States. The OPEC+ alliance is preparing to gradually boost production starting in April, with Russian Deputy Prime Minister Alexander Novak stating that this move will help saturate the market as demand rises.
On the other hand, the impending mirror duties by the US on goods from other countries are set to take effect on Wednesday. This development has raised investor worries about a potential global trade war that could hamper economic growth and restrict energy demand. The market will be closely monitoring these factors in the coming days to assess their impact on oil prices.
