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Oil prices decline again amid worries about Opec+ supply hikes - YAHOO FINANCE
Oil (BZ=F, CL=F)
Oil prices moved lower on Tuesday, continuing a downward trajectory for August, as concerns about both supply and demand weigh heavily on traders' minds.
Brent crude (BZ=F) dipped 0.6% in early trade to $68.34 per barrel. Over the past five sessions prices have dipped nearly 5.8%.
West Texas Intermediate (CL=F) followed a similar trajectory, sliding 0.8% by 8.45am in London. Prices were around $65.80 per barrel and have lost about 4.9% over the past five sessions.
Anxiety is high following a decision by the Organization of the Petroleum Exporting Countries and its allies (Opec+) to hike output by 547,000 barrels per day in September. The increases add to oversupply concerns surrounding the US's oil consumption.
The production increase marks the full and early reversal of Opec+’s most significant supply cuts, which had been implemented to support prices during the pandemic. It also includes a separate boost for the United Arab Emirates (UAE), raising total output by about 2.5 million bpd, roughly 2.4% of global oil demand. Opec+ justified the move by citing a resilient global economy and low stockpiles.
There are worries that the group will increase supply again after September, with discussions about unwinding a further 1.65 million bpd of cuts at the group's next meeting on 7 September ratcheting up tensions
