Oil Prices Decline Ahead of OPEC+ Meeting
In the global commodity market, prices of crude oil declined on Wednesday ahead of two OPEC+ meetings scheduled this week; however, the US’ decision to prohibit Chevron from operating in Venezuela raised supply concerns, limiting price falls.
International benchmark Brent crude declined by around 0.3%, trading at $63.58 per barrel. Similarly, the US benchmark West Texas Intermediate (WTI) fell by about 0.2%, settling at $60.76 per barrel, compared to $60.89 in the prior session.
The slight decline in prices was influenced by expectations that eight member countries of the OPEC+ group—which includes the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers—will increase production during Saturday’s meeting.
This scenario is deepening concerns over a potential supply surplus in markets where weak demand remains a prevailing worry.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman had begun a gradual easing of their voluntary production cuts totaling 2.2 million barrels per day (bpd) as of April.
In May, the eight countries implemented a production increase of 411,000 bpd, equivalent to a three-month rise, and announced a similar increase for June. Meanwhile, reports that the US has prohibited Chevron from operating in Venezuela limited further price falls by fueling concerns about supply disruptions.
According to international media outlets, the US government issued Chevron a restricted license that allows only infrastructure and equipment maintenance to preserve its assets in Venezuela. The company will not be permitted to engage in activities such as oil production and exports.
Chevron’s license that had allowed oil production and exports in Venezuela expired on Tuesday. #Oil Prices Decline Ahead of OPEC+ MeetingTinubu Seeks Senate Approval of 2025-2026 External Borrowing Plan of $21.5bn
