Brent continues shed value
The front-month ICE Brent contract has lost by $1.06/bbl on the day, to trade at $66.78/bbl at 09.00 GMT.
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Upward pressure:
Market participants are slowly growing optimistic towards trade talks between the US and China. This has supported Brent futures this week.
Representatives from the two countries have agreed on a framework to ease trade tensions, according to media reports.
The deal is yet to be reviewed and approved by US President Donald Trump and his counterpart Xi Jinping.
The news comes amid growing optimism over another US interest rate cut, with the US Federal Reserve (Fed) set to hold its next policy meeting in July.
“In addition to the rate-cut narrative, global growth optimism is starting to regain momentum,” SPI Asset Management managing partner Stephen Innes said.
Downward pressure:
Brent crude’s price has moved lower due to growing oversupply concerns in the global oil market.
Eight members of the OPEC+ coalition are expected to raise their combined August output by another 411,000 b/d, according to media reports. This news has countered any Brent gains.
“The market is now concerned that the OPEC+ alliance will continue with its accelerated rate of output increases,” ANZ Bank’s senior commodity strategist Daniel Hynes.
The Saudi Arabia-led group will again meet on 6 July 2025 to decide on August production levels, it said earlier.
“It would be the fourth month in a row the group has agreed to such a large increase in output,” Hynes said.
The oil producers’ group had originally agreed to gradually phase out of the 2.2 million b/d production cuts at a rate of 138,000 b/d every month.
By Aparupa Mazumder
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