Gasoline prices today (May 26): Continue to fluctuate after a sharp decline

Oil prices remained mixed at the beginning of the session after a sudden drop of about 3%. Brent crude oil prices stabilized at $76.25/barrel, while WTI rose slightly.

World oil prices

At the end of the trading session on May 25, oil prices unexpectedly reversed the upward trend from the beginning of the week with a decrease of about 3%. The sharp decline in oil prices occurred after Russian Deputy Prime Minister Alexander Novak lowered the prospect of further production cuts by OPEC+ at the meeting next week.

Gasoline prices fell in the trading session on May 25. Illustration photo: Reuters

Brent crude for July delivery fell $2.10, or 2.7%, to $76.25 a barrel. U.S. West Texas Intermediate crude fell $2.51, or 3.4%, to $71.83 a barrel. At one point during the session, both benchmarks fell more than $3.

Oil prices began to fall after Russian Deputy Prime Minister Novak was quoted as saying he did not think OPEC+ could cut production further, Reuters reported.

“I don’t think there will be any new steps,” Novak was quoted as saying by the Izvestia newspaper. According to the deputy prime minister, the decision was made a month ago when some OPEC+ countries voluntarily reduced oil production.

In recent days, top OPEC+ producers have sent a series of conflicting messages about their next oil policy moves, making it difficult to predict the outcome of the June 4 meeting.

Oil prices were supported on Tuesday as Saudi Arabia's energy minister warned that short sellers betting on lower oil prices should "watch out" for losses.

Some investors took that as a signal that OPEC+ could consider further production cuts.

Just a week before Prince Abdulaziz's comments, Russian President Vladimir Putin said that oil production cuts were necessary to maintain a certain price level.

The plunge in oil prices was limited by optimism that US President Joe Biden and House Speaker Kevin McCarthy were close to a deal to cut spending and raise the government 's $31.4 trillion debt ceiling after a virtual meeting on May 25.

Gasoline prices continue to fluctuate. Illustration photo: Reuters

Reuters quoted a US official as saying that an agreement could be reached this afternoon (May 26).

If a deal to raise the debt ceiling is reached, it would still need to be approved by both the Senate and the House before President Joe Biden could sign it into law.

Experts warn that a US government default would lead to catastrophic consequences for the country's economy, especially unemployment, bank interest rates and the real estate market, not to mention the domino effect on the global economy.