As OPEC+ nations decide to increase production, Crude Oil dives below $75 a barrel
Russia along with other OPEC+ nations will probably increase production thereby increasing their output, as indicated by some reports. As a result, traders pull back from the sector.
Price indicators and inventory data up until now have shown that the demand for crude oil has been overwhelming its supply which is why a production bump is a plausible scenario but no concrete statements have been made regarding the issue. However, the change last observed was -0.72% which brought the price down to $73.13.
Recognising the rapid shift in the market strategy, Gary Cunningham, Director of Market Research, Tradition Energy said that “Just the rumours that OPEC+ will consider adding additional production is enough to pull us back from the $75 mark.”