World oil prices in the morning of June 25 decline. Brent oil loses 1.7% in price amid expectations of increasing raw material production.
At 7:12 GMT, the cost of September futures for the North sea oil mixture of Brent decreased by 1.71% to 74.03 dollars per barrel. Earlier in the course of trading, the price of Brent fell by more than 2% to 73.59 dollars per barrel.
The price of August futures for WTI oil is 0.28%, up to 68.39 dollars per barrel, Interfax reports.
OPEC and a number of non-member countries (OPEC+) agreed at the end of 2016 in Vienna to reduce oil production by 1.8 million barrels per day from the level of October 2016, of which 300 thousand are in Russia. The deal started at the beginning of 2017 and was extended twice, the last time-until the end of 2018.
23 Jun OPEC+ agreed to escape from the fulfillment of the transaction. As the Ministers of energy of Russia and Saudi Arabia specified, in practice, this will mean an increase in production by 1 million barrels per day, including Russia by 200 thousand.
Analysts at Barclays Bank suggest that the obligations of the OPEC countries and Russia will eventually lead the market from the supply deficit in the market of 200 thousand barrels per day in the second half of 2018 to an oversupply of 200 thousand barrels per day.
The reduction in oil prices on June 25 is also due to the correction after a strong growth on Friday, which reached 5%, as investors played out the hope that the increase in OPEC+ oil production will not be as high as some experts expected.