Brent, WTI oil prices retreat despite OPEC+ agreement extension
(MENAFN) Following the decision by OPEC+ to prolong additional voluntary production cuts by 2.2 million barrels per day until the end of September, the price of Brent oil initially surged above the USD81 mark. However, this bullish momentum was short-lived as Brent oil experienced its lowest level since early February.
As of Tuesday, the price of Brent oil per barrel stood at USD77.1, marking a 1.2 percent decline from the previous day's level of USD81.2, as reported at GMT0805. Similarly, West Texas Intermediate (WTI) Crude Oil also faced downward pressure, dropping by 1.5 percent to USD73 on Tuesday, down from the USD77.3 level recorded on Monday.
This retreat in oil prices comes as a surprise to some market observers, considering the extension of production cuts aimed at stabilizing global oil markets. The decision by OPEC+ was intended to curb oversupply concerns and support prices amid ongoing demand recovery.
In recent weeks, both Brent and WTI oil prices had demonstrated resilience, with Brent nearing the USD85 level per barrel and WTI reaching USD81 in May. However, the current downward trajectory suggests a shift in sentiment, possibly influenced by factors such as demand uncertainties, geopolitical tensions, and economic indicators.
Despite the concerted efforts of major oil-producing nations to manage supply levels, market dynamics remain inherently volatile, susceptible to various external factors. The unexpected dip in oil prices underscores the complex interplay between supply, demand, and geopolitical considerations shaping global energy markets.
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