Oil Prices Fall Due To Slowing Economy

Oil Prices Fall Due To Slowing Economy

According to reports, the slowing economy has caused oil prices to fall. Concerns over the global demand of the product in the slowing economy reportedly outweighed the agreement of extension output cuts between OPEC and its allies.

Members of OPEC and Allies Voted Unanimously for the Nine-month Extension Agreement

Per the report, all OPEC member states and allies including Russia, unanimously voted the passage of the nine-month extension agreement. The accord was to extend the agreement to cut oil production by about 1.2 million barrels daily. The agreement was reached on the last day of OPEC and allies’ meetings in Vienna, on July 2.

Even though the oil markets found some respite from the trade truce between the United States and China, one strategist at BK Asset Management named Kathy Lien, stressed that the truce wasn’t the same thing as a trade deal between the two world powers.

The most recent weekly data on crude oil inventories in the U.S. will likely shed some light on the current nature of supply and demand in the market.

The American Petroleum Institute is scheduled to report its stockpiles data at 4:30 PM ET ahead of the official government data on July 3.

So far in energy trading, gasoline futures have dropped 0.4% to trade at $1.9225 per gallon as of 7:23 AM ET. While heating oil prices dropped by 0.5% to trade at $1.9434 per gallon.

West Texas Intermediate crude futures dropped by 0.4%, to trade at $58.86 per barrel as of 7:21 AM ET. Brent crude futures, lost 0.4%, to trade at $64.83.

Princess Ogono

Princess Ogono is a freelance writer and fitness enthusiast. She loves to write and so she does it full-time. When she isn't writing, she plays video games

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