Crude oil closes lower – OPEC sticks to production policy and Biden wants to urge Gulf states to increase output

Crude oil futures closed lower on Thursday (June 30) as investors remained concerned about a global recession and a slowdown in energy demand. As for the results of yesterday’s OPEC and OPEC+ meeting, the meeting decided to increase production by 648,000 barrels per day in August.

  • WTI crude futures fell $4.02, or 3.7 percent, at $105.76 a barrel.
  • BRENT crude futures were down $1.45, or 1.3%, at $114.81 a barrel.

Oil markets were pressured by concerns that central banks raising interest rates could plunge the global economy into recession. This would lead to a slowdown in oil demand. In addition, some investors postponed trading ahead of the long holiday in the United States. Oil trading in the U.S. will be closed on Monday, July 4, in observance of the U.S. National Day holiday.

At the OPEC+ Group meeting, it was decided to increase production by 648,000 barrels per day in August. This capacity increase is in line with the original decision of the June 2 meeting, when it was decided to increase production by 648,000 barrels per day in both July and August.

However, yesterday’s OPEC+ meeting avoided discussions on production policy in September and the months beyond.

OPEC+ will hold its next production policy meeting on Aug. 3.

In addition, U.S. President Joe Biden confirmed that he will visit Saudi Arabia in July. The goal of his trip will not be to pressure Saudi Arabia to increase oil production, but all countries in the Persian Gulf should increase their oil production as well. All countries should realize that this is beneficial for them.

The Spot Market is Open

Friday, July 1, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.45

105.66

-0.10

-0.09%

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