Oil prices have fallen for four consecutive sessions.. and "OPEC+" is considering a new increase in production.
Oil prices witnessed a decline for the fourth consecutive session today, Friday, May 23, amid expectations of a possible increase in production by the "OPEC+" alliance, threatening to record the first weekly loss for crude in three weeks.
According to the data, Brent crude futures fell by 31 cents (0.5%) to $64.13 a barrel at 04:12 GMT, while WTI crude futures dropped by 33 cents (0.5%) to $60.87.
This week, Brent crude lost 1.9%, while WTI crude decreased by 2.5%.
The downward pressure stems from a report by "Bloomberg," revealing the intention of the "OPEC+" alliance to discuss a new production increase during its meeting scheduled for June 1.
The agency quoted sources within the alliance stating that the proposed options include raising production by 411,000 barrels per day starting from July, although a decision has not been made yet.
In this regard, analysts at "ING" bank noted in a research note that "the oil market is facing increasing pressure as the debate intensifies over the OPEC+ decision on production levels in July," expecting the alliance to proceed with the mentioned production increase, with Brent averaging $59 a barrel in the last quarter of the year.
It is worth mentioning that "OPEC+" _comprising OPEC countries led by Saudi Arabia and allies like Russia_ had previously agreed on gradual production increases of one million barrels per day distributed over the months of April, May, and June.
Concerns about oil oversupply heightened after U.S. data showed a sharp increase in crude inventories, with "The Tank Tiger" company revealing a surge in oil storage demand in the United States to levels close to those seen during the peak of the COVID-19 pandemic.
Today, market participants are closely watching Baker Hughes' data on the number of oil and gas drilling rigs in the United States, which is a key indicator of future supply trends.
Simultaneously, markets are closely monitoring the developments of the U.S.-Iranian nuclear negotiations in Rome, which could directly impact the volume of Iranian oil exports if sanctions are lifted. The fifth round of these talks is set to take place today.
