HomeIndustriesOil Drops as Investors Weigh Opec+ Decision

Oil Drops as Investors Weigh Opec+ Decision

Oil retreated on Wednesday following a 2% rise the previous day after Saudi Arabia and Russia announced production cuts. Investors are now looking to the 8th OPEC International Seminar in Vienna Wednesday for an indication of whether other members of the cartel will follow Saudi Arabia and Russia’s example.

Brent, the global benchmark, fell back below $76 per barrel following the conclusion of the 4th of July holiday that saw U.S. markets close. After the Saudi and Russian output cut announcements were made public, Morgan Stanley cut its fourth-quarter forecast for Brent from $75 per barrel to $70.

“We still model stock draws in 3Q but expect oil price softness to continue as the market’s focus shifts to 1H24 when balances look in surplus,” analysts from the investment banking company stated.

Investor confidence was partially restored after the energy minister of the UAE confirmed that his nation would not be implementing output cuts like their OPEC+ counterparts.

Crude prices have slumped this year, largely driven downward by China’s stalling economic recovery. Observers will await the upcoming OPEC+ meeting to gauge the direction of crude and Brent prices.

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