NUR-SULTAN.KAZINFORM – According to experts, oil prices were affected by the decision of OPEC + to increase production and the growth of oil reserves in the United States, Kazinform reports with reference to msn.
Interactive Investor’s head of investment, Victoria Sholar, said oil is trading sharply lower by about 2% and Brent oil has reached $98 per barrel.
A number of factors influenced the decline in oil prices.
OPEC+ agreed to a minimum production increase of 100,000 barrels per day, with a slight increase in supply acting as a catalyst for the price decline. Saudi Arabia and the UAE are the only producers that can actually increase oil production.
On top of that, data from the Energy Information Administration (EIA, an independent agency within the US federal statistical system) showed that US crude oil inventories rose unexpectedly by 426.55 million barrels last week.
As a result, the price of Brent oil fell below $100 per barrel, and the OPEC + decision intensified the move down. After peaking in March this year, prices began to retreat from the highs.