Oil prices fell on Tuesday following the breakdown of talks between the Organization of the Petroleum Exporting Countries and its allies (OPEC +). US and European stock prices mostly fell.
The price of WTI crude oil on the New York Stock Exchange had approached a seven-year high after negotiations with 23 oil-producing countries were canceled, ending consultations on a proposal to increase crude oil production.
However, investors quickly changed course by selling off Brent and WTI crude contracts, and oil prices fell.
“There is an opportunity to get more oil, in fact, much more, and the market expects this logic to prevail soon,” said Louise Dixon, an analyst at Rystad Energy.
OPEC + had considered proposing to increase production by 400,000 barrels per day each month from August to December, but no agreement was reached due to objections from the United Arab Emirates (UAE).
“Unregulated extraction can mean the freedom for everyone to extract so much [jēlnaftas]”as far as each country would consider appropriate, and it would be a very unfavorable development for a market that is accustomed to rules and supply quotas in a world still affected by Covid – 19,” said Dixon.
The Dow Jones Industrial Average fell 0.6% to 34,577.37 points on Tuesday, the Standard & Poor’s 500 index fell 0.2% to 4,343.54 points, and the Nasdaq Composite index rose 0.2% to 14,663.64 points.
The London Stock Exchange index FTSE 100 fell by 0.9% to 7100.88 points on Tuesday, the Frankfurt stock exchange index DAX 30 fell by 1.0% to 15,511.38 points, while the Paris stock exchange index CAC 40 fell by 0.9% to 6507 .48 points.
In the e-commerce of the New York Stock Exchange, the price of WTI crude oil fell by 2.4% on Tuesday to USD 73.37 per barrel. The price of Brent crude fell 3.4% to $ 74.53 a barrel on the London Stock Exchange.
The euro fell against the US dollar from 1.1864 to 1.1826 dollars per euro on Tuesday, the British pound against the US dollar fell from 1.3844 to 1.3799 dollars per pound, and the US dollar against the Japanese yen fell from 110.97 to 110.61 yen per dollar. The euro depreciated against the pound sterling from 85.70 to 85.67 pence per euro
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