Oil prices edged lower on Wednesday morning as markets digested the decision by OPEC and its allies, known as OPEC+, to increase output from October.
The price of Brent North Sea crude for August delivery was trading around $77.49 a barrel, down 0.04% from the previous day’s close. U.S. light crude WTI for July delivery fell 0.07% to $73.20 a barrel.
Demand was also weighed down by reports of an unexpected build in U.S. inventories of crude oil, gasoline, and distillates last week. Market attention now turns to U.S. oil inventory data due from the Energy Information Administration (EIA) later Wednesday afternoon.
Factors affecting oil prices:
- OPEC+ plans to increase output from October.
- Unexpected build in U.S. inventories of crude oil, gasoline, and distillates last week.
- Expectations for U.S. oil inventory data from EIA.
Outlook:
A number of factors will influence oil prices in the near term, including the geopolitical situation, global demand for oil, and OPEC+ decisions. In the short term, oil prices could remain volatile, while in the medium to long term, they could rise due to growing demand and limited supply.
Oil prices on June 5, 2024
| Oil | Price (USD/barrel) | Change (USD/barrel) | Change (%) |
|---|---|---|---|
| Brent (August) | 77.49 | -0.03 | -0.04 |
| WTI (July) | 73.20 | -0.05 | -0.07 |
Important information:
- Oil prices are quoted in U.S. dollars per barrel.
- One barrel of oil is equal to approximately 159 liters.
- Brent crude oil is a benchmark price for oil produced in the North Sea.
- WTI crude oil is a benchmark price for light oil produced in the United States.
