Oil prices fell after the Organization of the Petroleum Exporting Countries and its allies failed to reach an agreement to increase production from August. This was because the United Arab Emirates rejected the proposed eight-month extension for the OPEC+ production cuts.
Crude oil futures fell on Monday as concerns over slowing global growth are likely to tighten supply after talks between OPEC+ producers to increase output in the coming months stalled.
September’s Brent crude fell 15 cents, or 0.2%, to $75.40 as of 0411 GMT, while August West Texas Intermediate (WTI) crude fell 12 cents, or 0.2%, to $74.44 a barrel.
Prices will continue to fluctuate as long as the conflict continues. However, while it seems very unlikely, the risk remains that a complete collapse could lead to a price war that is no different from last year.
The finance chiefs of the G20 economies warned on Saturday that the continued spread of coronavirus strains and unequal access to vaccines threatens the global economic recovery.
New COVID-19 infections are reported to have increased in 69 countries, with the daily rate increasing since the end of June to 478,000. Its impact is not felt yet, but at such a rate, sooner or later it will hit demand again.
Pre-month WTI crude oil futures posted their sixth weekly gain last week after a bullish report from the U.S. Energy Information Administration showed U.S. crude and gasoline stockpiles plummeted and gasoline demand hit its highest level since 2019.
In response to higher oil prices, US energy firms added oil and gas rigs for the second week in a row, according to data from Baker Hughes.
