Oil closes lower as markets digest OPEC+ decision

Oil drilling rigs

Oil closed lower today, June 7, as markets absorbed OPEC+ output cut decision and reviewed supply and demand in the United States.

Brent crude for August delivery fell 0.5%, or 42 cents, to close at $76.29 a barrel. WTI crude for July delivery decreased by 0.6%, or 41 cents, to record $71.74 per barrel.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, rose 0.10% to 104.12 points at 09:51 pm Makkah time.

The Energy Information Administration (EIA) said it expects the average price of WTI crude to reach $74.60 per barrel this year, an increase of 1.3% from May expectations. The agency also raised its forecast for Brent crude by 1.1% to $79.54.

The EIA also expects crude production in the US to rise by 720,000 barrels per day to 12.61 million barrels per day this year, compared to a previous forecast of an increase of 640,000.

Meanwhile, the OPEC+ decision on a new production target of 40.46 million barrels for 2024 continues to affect trading, along with Saudi Arabia’s announcement of an additional production cut by one million barrels per day, starting in July.