The price of oil decreased by more than 1.7%, continuing yesterday's decline. Pressure on prices is exerted by the concern of market participants about the increase in supply at the end of the year, signs of weakening demand in the United States, as well as the renewed growth of the American currency.
Over the weekend, OPEC+ members agreed to extend most of their oil production cuts until 2025, but left room for voluntary cuts from eight members to be gradually unwound beginning in October.
Experts said that an increase in supply from OPEC+ could further fill the oil market, where demand has already shown signs of weakness. Meanwhile, yesterday's US data - the ISM report and statistics on construction costs - disappointed investors, and pointed to the possibility of an even greater decline in demand for oil and fuel.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.08% to 104.21.
The next catalyst for the oil market will be reports on oil product inventories in the United States over the past week. Later today, the American Petroleum Institute (API) will present its data, and tomorrow an official report from the Energy Information Administration will be released. These data will help to assess how much gasoline was consumed around the Memorial Day weekend, the start to the U.S. driving season.