According to a recent buzz, it is announced that Oil prices have cut down by more than 1% owing to the mounting exports from OPEC and a strong dollar.
As reported by Reuters, Benchmark Brent crude futures dropped 57 cents to touch at $49.04 a barrel, while US WTI crude futures fell 63 cents to reach $46.44,
Commerzbank senior commodity analyst Carsten Fritsch was quoted by the news agency as saying: "The air is getting thin for oil prices.
“The price increase just ran out of steam, which is not very surprising, given the news-flow of rising OPEC supplies."
According to another analyst, with the intensification of the value of dollar, there is less inducement to make an investment in commodities such as crude oil. Also, as per a report by Thomson Reuters Oil Research, OPEC exports augmented for the second month in a row in June to touch at 25.92 million bpd, an increase of 1.9 million bpd contrasted with the same month last year.
OPEC’s labors to restrain price turn down have been undermined by growing output from Libya and Nigeria, which have been exempted from the cuts. Libya’s crude production is around one million bpd, which is a four-year high.