Oil falls 3% on uncertainty over future OPEC+ output, recession fears
NEW YORK, June 30 (Reuters) - Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously announced despite tight global supplies, but left the market wondering about future output.
Brent crude futures for September delivery fell $3.42, or 3%, to settle at $109.03 per barrel. The August contract, which expires on Thursday, fell $1.45, or 1.3%, to settle at $114.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures fell $4.02, or 3.7%, to settle at $105.76 a barrel.
The OPEC+ group of producers, including Russia, on Thursday agreed to stick to its output strategy after two days of meetings. The producer club avoided discussing policy from September onwards.
Previously, OPEC+ decided to increase output each month by 648,000 barrels per day (bpd) in July and August.
Sanctions on Russian oil since Russia's invasion of Ukraine have helped send energy prices soaring, stoking inflation and recession fears.
Oil prices fell alongside Wall Street on Thursday. The S&P 500 was set up for its worst first six months since 1970, on concerns that central banks determined to tame inflation will hamper global economic growth.
Price declines in the oil market were exacerbated as U.S. traders squared positions ahead of the three-day Fourth of July holiday weekend.
- The 24th China International Agrochemicals & Crop Protection Exhibition (CAC2024) has Officially Opened1203
- IBI was Invited to Visit Jazan and Riyadh, Saudi Arabia for Cross-border Cooperation1278
- Focus GOO, The 2024 (5th) Global Oil and Oilseeds Industry Summit was held in Nantong1282
- LYDD was invited to attend the Trade Promotion and Exchange Conference of the China Chamber of I/E of Foodstuffs, Native Produce and Animal By-products(CFNA) with representatives of Mato Grosso State from Brazil1286
- Mr. Yang Junhao, General Manager of the Malaysia Palm Oil Board (MPOB) China Office and his delegation visited LYDD again1131