Global oil prices recently faced a downturn in the market, driven by a surge in production in the United States, the world’s largest consumer of crude oil, leading to a decrease of over one percent. In particular, Brent crude for July experienced a decline of 95 cents, settling at $85.38 per barrel, while West Texas Intermediate crude for June settled at $80.77, down $1.16.
Also Read: Global Oil Prices Drop Over 4% Following Delayed OPEC+ Meeting
The notable increase in US crude oil production is a significant factor in this shift. Production rose to 13.15 million barrels per day in February from 12.58 million in January, representing the largest surge in three years, as reported by the Energy Information Administration.
This uptick in production dynamics has exerted downward pressure on oil prices globally. It underscores the delicate balance between supply and demand in the oil market, reflecting the complex interplay of various factors influencing the industry.
