Oil Prices Extend Three-Week Slide Ahead of OPEC+ Meeting

Crude lipid prices continued falling Tuesday, extending a month-long diminution contempt aggravated hostilities successful nan Middle East and dwindling U.S. supplies.

After dropping for 3 consecutive weeks, brent crude, nan world benchmark, has dropped different 2% this week to arsenic debased arsenic $78 per barrel. Since July 4, brent for September transportation has plunged 10%.

Oil's downward inclination could person implications for an online gathering of apical OPEC+ ministers connected Thursday.

Most analysts had expected nary changes to nan cartel's existent output. But this month's diminution has raised nan anticipation of accumulation cuts—just 2 months aft OPEC+ formally announced it would statesman lifting existent accumulation limits successful October.

Defying Events, Supplies

This week's descent has occurred successful nan aftermath of Saturday evening's rocket onslaught connected Israel and nan consequent retaliation, marring an already unstable region.

Falling lipid prices besides person defied decreasing U.S. crude supplies.

"At 436.5 cardinal barrels, U.S. crude lipid inventories are astir 5% beneath nan 5 twelvemonth mean for this clip of year," nan U.S. Energy Information Administration said successful its July 19 play position report.

Traders person pinpointed ongoing economic woes successful China arsenic a cardinal reason for weakness successful world lipid markets. But it besides coincides pinch a broader dip successful prices for different earthy materials, often a motion of a cooling world economy.

Since July 3, nan S&P GSCI Index, encompassing prices for 24 commodities, has declined astir 8% aft exhibiting small alteration successful nan first half of nan year.

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