Oil falls as OPEC production increases

Oil falls as OPEC production increases

Oil prices experienced a decline of more than one percent in early trading on Monday. This was due to a significant drop in Saudi crude prices and an increase in OPEC’s production. The impact of these factors outweighed concerns related to the escalation of geopolitical tensions in the Middle East.

At 0330 GMT, Brent crude and West Texas Intermediate crude both dropped more than 1%. Brent crude fell by 90 cents to $77.86 a barrel, while West Texas Intermediate crude fell by 87 cents to $72.95 a barrel.

The prices of two crude oil types increased by over two percent during the first week of 2024 as investors returned from vacation and shifted their attention towards geopolitical risks in the Middle East. This was in response to the recent Houthi attacks in Yemen targeting ships in the Red Sea.