InstaForex

July 8, 2021

Despite US Stocks Falling, Oil Prices Keep Falling!

 Oil prices traded lower on Thursday, affected by uncertainty in the market after OPEC+ canceled a meeting without reaching an agreement on production.


At the opening of the European session, the benchmark Brent crude oil futures traded lower at $ 73.15 a barrel, while US WTI was down at $ 71.90 a barrel.


Brent crude oil prices have fallen nearly 5% since closing on Monday, after OPEC+ talks to fix production in August were shattered following the rejection of the United Arab Emirates (UAE) ’s demand to increase its output.



This has caused markets to worry that the dispute will lead to a split in the OPEC+ agreement and producers acting to increase production outside the agreement.


Meanwhile, crude oil supplies in the United States continued to show a reduction by declining by 8 million barrels last week, according to data released by the American Petroleum Institute (API).


However, oil prices failed to react to this encouraging reading and traded lower in today's trading session.