“Oil Futures Prices Continue to Decline Amid Prospects of US Recession and OPEC Plus Production Cuts”

Oil futures prices continued their decline during trading today, Wednesday, after declining nearly 5% yesterday, bringing the benchmark Brent crude to less than $75 a barrel in New York, with the increasing prospects of a recession in the US economy, bringing the price of US crude to less than $69 a barrel.

Bloomberg news agency stated that days after some countries of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the OPEC Plus grouping began to reduce their production in implementation of the decision to cut production by 1.6 million barrels per day, starting from the beginning of this month, it does not seem to be achieving success with regard to the stability of crude prices. The price of West Texas Intermediate crude, which is the benchmark for US oil, has fallen by about 14% since the beginning of this year.

Doubts also increased about Russia’s commitment to cutting production, as it pledged in light of data showing an increase in its oil exports during the past week.

And oil futures prices fell to their lowest levels since last March, with renewed concern about the stability of US regional banks.

Jens Pedersen, Director of the Oil and Commodities Research Department at Danish Danske Bank, said, “The decline in oil prices recalls the decline in last March, when the banking crisis erupted following the collapse of Silicon Valley and Signature banks in the United States, and the sale of Credit Suisse to save it from collapse in Switzerland.

Oil prices suffered from pressure during the current year, despite China’s abandonment of strict restrictions to contain the emerging corona virus within the framework of the zero infection strategy, with the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the sudden OPEC Plus gathering to reduce production by 1.6 million barrels per day, as of the beginning of the year. current month.

Prices also continued to decline due to fears of a possible recession in the US economy, and Moscow’s ability to continue exporting its crude oil in light of the Russian war against Ukraine.

The price of Brent crude fell by $2.82 to $72.50 a barrel for next July delivery in New York trading, after falling yesterday to its lowest level since March 24.

West Texas Intermediate crude, the benchmark for US oil, fell by $2.83 to $68.83 a barrel for next June delivery.