- A slight increase in OPEC+ production quota is expected.
- Fall in stock markets and negative economic perspectives weigh on prices.
- WTI loses more than $5 since Wednesday’s peak.
Oil prices are failing to escape the overall negative sentiment and are losing ground, extending the pullback that started on Wednesday. The barrel of WTI (platforms) reached as high as $112.70, the highest level in almost two weeks, and is trading at $107.50, the lowest in three days. The price is on track for the first monthly drop since November of last year.
Stocks are falling in Europe and futures on Wall Street are down more than 1%, ending one of the worst semesters in decades. The negative climate due to fears of a slowdown in the global economy. Which also weighs on expectations of oil demand.
Members of the Organization of the Petroleum Exporting Countries and its allies They stated that production is below targets, due to sanctions on Russia, and supply problems in several countries. OPEC+ is in a meeting and the expectation is that a modest increase in production quotas will be approved.
On Wednesday there was a drop in the US oil reserves as reported by the Energy Information Agency of almost three million barrels in the week of June 24. On Thursday there will be data on gas inventories and before that, US consumption and personal spending.
Technical levels
Source: Fx Street
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