Brent crude oil falls below $80 for first time since February
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Brent crude oil prices dipped below $80 per barrel on Monday, marking the first time this has happened since February.
The drop followed an OPEC+ meeting where it was agreed that some countries could begin phasing out voluntary output cuts starting in October.
Around 1400 GMT, Brent futures fell 2.2 percent to $79.35 before recovering to about $80.32. Meanwhile, American WTI contracts decreased by 1.0 percent, trading at $76.19.
The group of major oil-producing countries agreed that certain member states could start increasing oil production. This decision signals a potential rise in oil supply in the global market, contributing to the price decline. As the voluntary production cuts are phased out, the global oil supply is expected to grow, potentially outpacing demand and exerting downward pressure on prices.
As of May 31, 2024, Brent crude oil futures were trading around $79.72 per barrel. Analysts have recently adjusted their 2024 oil price forecasts, taking into account a reduction in supply concerns due to easing conflicts in the Middle East and Ukraine.
Previous concerns about supply disruptions due to conflicts in Ukraine and the Middle East have lessened, reducing some of the upward pressure on oil prices. Analysts are revising their forecasts for 2024, generally predicting lower prices compared to earlier projections.