Reasons for world oil prices falling on May 23

According to Reuters on May 23, oil prices fell due to the rising US dollar and the possibility that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will continue to increase crude oil production. Specifically, Brent crude fell to $64.07/barrel. US West Texas Intermediate (WTI) crude fell to $60.81/barrel.

World oil prices fell on May 23. Photo: Reuters

For the week, Brent crude fell 2%, while WTI crude futures fell 2.7%.

The dollar rose against a basket of currencies on Thursday after the U.S. House of Representatives passed a bill to cut taxes and spending. Meanwhile, oil prices typically move inversely to the dollar, as a stronger dollar makes oil more expensive for buyers who do not use the currency.

A Bloomberg report said OPEC+ is considering a larger production increase at its June 1 meeting, also putting downward pressure on oil prices.

One option discussed was to increase production by 411,000 barrels per day in July, but no final decision has been made, according to delegates.

Previously, Reuters also reported that OPEC+ could speed up the process of increasing oil production.

In addition, according to data from storage brokerage The Tank Tiger, demand for crude oil storage in the US has skyrocketed in recent weeks, reaching levels similar to the Covid-19 pandemic, as traders prepare to deal with a wave of increased supply from OPEC+ countries in the coming months.

Tran Dinh

Source: https://congthuong.vn/ly-do-gia-dau-the-gioi-giam-trong-ngay-235-388916.html