Oil prices fall by more than 4% despite supply concerns

Oil prices fell by more than 4% today, Monday, as a result of a sharp reduction in prices from Saudi Arabia and an increase in the production of the Organization of the Petroleum Exporting Countries (OPEC), with the impact of this overshadowing supply concerns related to the escalation of geopolitical tension in the Middle East.

According to Reuters, by 1440 GMT, Brent crude futures fell 4.2%, or $3.38, to $75.38 per barrel, and US West Texas Intermediate crude fell 4.7%, or $3.52, to reach $70.29.

The two crude oils jumped by more than 2% in the first week of 2024 after investors returned from vacation to focus on geopolitical risks in the Middle East in the wake of the Houthi attacks in Yemen on ships in the Red Sea.

A survey revealed that OPEC production increased by 70,000 barrels per day in December to 27.88 million barrels per day, which outweighed the pressures of rising prices linked to geopolitical concerns.

The survey showed that increases in Iraq, Angola and Nigeria offset ongoing reductions by Saudi Arabia and other members of the broader OPEC+ alliance.

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