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-bZQiHf10GK.jpeg "A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023")
Early in the trading session on Tuesday, oil prices experienced a slight decline, continuing the trend from the previous day when prices dropped to their lowest point in four months.
This was due to concerns among investors about a potential increase in supply later in the year.
Brent crude futures decreased by 20 cents, or 0.3%, to $78.16 per barrel. This marked the first time Brent closed below $80 since Feb. 7, following a more than 3% drop on Monday.
Similarly, US West Texas Intermediate crude futures dipped by 17 cents, or 0.2%, to $74.05, reaching a four-month low after sliding 3.6% the day before, as reported by Reuters.
Over the weekend, the Organization of the Petroleum Exporting Countries and its allies, led by Russia (collectively known as OPEC+), agreed to prolong most of their oil output cuts until 2025, while allowing for gradual unwinding of voluntary cuts from eight members starting in October.
The continuation of voluntary cuts through the third quarter is expected to exacerbate tightness in crude supply during the summer, while the potential return of some supply from October indicates that the extensive market support by OPEC+ may not be sustained indefinitely, according to Walt Chancellor, an energy strategist at Macquarie.
Additionally, concerns about weakening demand growth have contributed to the downward pressure on oil prices in recent months, with a focus on data regarding US fuel consumption.
According to GasBuddy data, the average gasoline price in the United States dropped by 5.8 cents per gallon to $3.50 per gallon on Monday.
