Crude oil prices drop nearly 8% in just 5 sessions to hit a 4-month low on worries over higher supply
Also Read: Lok Sabha Election Results 2024: Will Nifty 50 break its record today if Narendra Modi-led NDA retains power?On Sunday, OPEC+ announced an agreement to extend most of their supply cuts through the third quarter, with a plan to gradually phase them out over the next 12 months, earlier than some OPEC watchers had assumed.The accord prolongs roughly 2 million barrels per day of cuts, which have played a key role in supporting crude prices above $80 per barrel this year. By December, an additional 500,000 barrels per day is expected to re-enter the market, with a total of 1.8 million barrels per day anticipated to return by June 2025.Also Read: Stock market today: Investors lose ₹26 lakh crore as election race gets tighter than what exit polls predictedThis decision comes even as global oil demand appears dim and robust supply from non-OPEC members persists.
The agreement aims to support oil prices while addressing internal pressures from members such as the United Arab Emirates, which has pushed for higher output levels.Also Read: Lok Sabha Elections 2024 trading strategy: RIL, Zomato, HDFC Bank, NTPC and more - CLSA lists 54 'Modi stocks' to buyGoldman Sachs Group Inc. deemed the OPEC decision bearish, whereas UBS Group AG and RBC Capital Markets LLC expressed confidence in the alliance's ability to maintain market control.
Most analysts had anticipated OPEC would extend the production curbs through the end of the year, as reported by Bloomberg.Additionally, the U.S. government is set to release inventory and product-supplied data on Wednesday.
This data, considered a proxy for demand, will reveal how much gasoline was consumed around Memorial Day weekend, signaling the start of the U.S. driving season.On the
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