Oil Prices Decrease After Agreement To Raise Output
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Oil prices fall by 6% a day after major oil producers agreed to increase supply.
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Pumpjacks in Daqing oil field in Heilongjiang province, China August 22, 2019 | Credit: Reuters
Oil prices decrease Monday by 6% after OPEC+ reached an agreement on boosting oil output in light of the threat that COVID-19 is posing to economic recovery.
West Texas Intermediate lost 6.1% at $67.42 a barrel, and North Sea Brent lost 5.4% at $69.61 a barrel.
At the same time, the Delta variant is stoking markets' fears of COVID-19 undermining economic recovery.
Investors from all around the globe are selling their stocks, commodities, and cryptocurrencies rather than buying bonds, which were considered a safe bet, said Edward Moya, economic analyst at OANDA.
Moya also said that risk aversion exists while Delta pushes people to search for safety amid escalating global economic concerns.
OPEC+ agreed Sunday to put out an additional 400,000 barrels as of August to cover increasing demand as economies reopen.
