Oil prices fell on Monday after OPEC+ decided to gradually reduce production cuts from October. The barrel of Brent, the European benchmark, fell 3.39% to $78.36, its lowest since February. The West Texas Intermediate (WTI), American benchmark, also decreased by 3.59% to $74.22.
OPEC and its allies announced an extension of production cuts until the end of September, followed by a gradual reintroduction of barrels to the market over the following 12 months. According to Robert Yawger of Mizuho USA, adding barrels in October, when the travel season is off, is inappropriate, causing prices to fall.
Tamas Varga of PVM Energy expressed the market’s disappointment with the decision, highlighting the lack of tangible signs of improving demand.
