Oil falls 2% after news of a possible increase in OPEC+ supplies

Oil prices recorded a decline of 2% on Wednesday, after reports about the study of the OPEC+ to increase oil production in June, as Brent crude futures fell 1.96% to $ 66.12 a barrel, while West Texas Intermediate crude decreased 2.2% to $ 62.27 a barrel.

This decline comes despite reaching the highest level of Brent crude since April 4th at $ 68.65 a barrel during the session.

Informed sources indicated that several members of OPEC+ are seeking to accelerate the increase in production despite previous differences over the commitment to production classes. Despite the tensions, the Ministry of Energy in Kazakhstan issued a statement confirming its commitment to a balance between supply and demand, while expressing adherence to international agreements. Kazakhstan, which exceeded its agreed production share, confirmed that it would overcome its national interests when determining the levels of production.

In the United States, energy information management data showed a rise in crude oil stocks, while gasoline stocks and distillation products decreased, which temporarily supported prices. In addition, reports on the possibility of President Donald Trump’s management of customs duties on Chinese goods between 50 to 65% have reduced prices.

It is noteworthy that the US President retracted his threats to dismiss the President of the Federal Reserve, Jerome Powell, after increasing criticism for not lowering interest rates.