OPEC+ decision and sanctions against Russia: world oil prices are falling

Oil prices have fallen since OPEC+ decided to increase oil production. Major oil brands are now trading below $70.

This was reported by Reuters.

Brent crude oil prices fell 0.26% to $69.49 a barrel, while WTI fell 0.18% to $67.21 a barrel. Both have fallen about $2 in the past 3 days.

It is worth noting that OPEC+ countries agreed to increase oil production by 547,000 barrels per day in September.

“The actual increase in production from the eight OPEC+ countries will be 1.7 million barrels per day, while other members reduced production after previous overproduction,” Goldman Sachs analysts noted.

Amid new US sanctions against Russia, ships carrying Russian oil bound for India have changed course, putting supplies of 1.7 million barrels per day at risk.

Reuters noted that investors are concerned about the impact of US tariffs on the global economy and energy demand after weaker-than-expected US employment data.

As a reminder, US President Donald Trump announced the introduction of new tariffs for India : from August 1, the country will have to pay 25%. He explained that India buys most of its military equipment from Russia and, together with China, is one of the largest consumers of Russian energy.

It is worth adding that Oil Minister Hardeep Singh Puri said that India will be able to meet its oil needs from alternative sources if Russian supplies are cut off by US sanctions.

Earlier it became known that China refused to comply with Washington’s ultimatum and said that it would continue to import oil from Russia and Iran, despite the threat of 100% tariffs from the US .

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