November 22, 2024

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Huge losses for crude oil

Huge losses for crude oil

Oil prices fell on Tuesday, with the US contract losing the $70 per barrel level amid rising tension ahead of the upcoming OPEC+ meeting this weekend.

In particular, the July crude contract fell $3.21, or 4.4%, and closed at $69.46 a barrel on the New York Mercantile Exchange.

July Brent crude lost $3.53, or 4.6%, to $73.54 a barrel in ICE futures.

Concerns about a global economic slowdown amid aggressive interest rate hikes on both sides of the Atlantic have weighed on the energy price outlook.

OPEC and its allies in OPEC+ responded by cutting production and investors are now awaiting the cartel’s decisions at its June 4th meeting. Investors saw tensions within OPEC+, as Saudi Arabia left open the possibility of further production cuts, something Russia appears to reject. Russian Prime Minister Mikhail Mishustin made it clear that “there is no need for new cuts,” while Saudi Arabia’s energy minister warned market short sellers — investors who bet on lower prices — that they would “harm,” indicating that the country is ready for further cuts in oil prices. production too.

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