Oil prices down by over 1.5%

Global oil prices have dropped by over 1.5%, as markets are assessing the prospects for decline in demand for this crude, reported from the trading data.

August futures for Brent fell 1.54% to $73.64 per barrel and July futures for WTI declined by 1.67% to $69.

Following the results of June 4 session, the OPEC+ alliance declared the extension of its deal for 2024 and reduction of the overall target level of oil production by 1.4 million BPD next year. 

The decline in production led to increased fears about a decrease in demand for black gold.

The situation is at the point where markets are willing to bet that the risks of demand cuts could outweigh Saudi Arabia's ability to raise prices, said Vishnu Varathan, Head of Economics and Strategy, Asia and Oceania Treasury at Mizuho Bank.

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