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