On Thursday last week, OPEC announced an increase of oil productivity by 411,000 barrels per day with a total of 2.2 million barrels, that lead to the oil price crashing after the announcement. Brent Crude is currently at $63.62 from its Thursday high of $73, down by more than 12%. The countries implementing the oil production increases are Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman.
The price of natural gas has also gone down since the announcement going from $4.19 of its Thursday high, down by 9.55% at $3.79 as of the time of writing. EU Natural Gas imports are currently at €36.63, 8.63% down from last Thursday.
Natural gas prices are still unusually elevated having rallied since October of last year by going above $4. High demand by the US and pressures on global supply due to the Russian invasion of Ukraine have kept pushing the price of natural gas higher late last year, but ongoing construction of LNG exports facilities in the US and new drilling projects are set to pressure the price downward yet again.
US Treasury Secretary Scott Bessent described last week’s oil crash as underreported by the media, noting that oil prices have a greater impact on ordinary people than the stock market.
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