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West Texas Intermediate (WTI) continues to decline for the fifth consecutive day, trading around $73.90 per barrel on Tuesday. This drop in crude oil prices is attributed to the Organisation of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, announcing a gradual plan to ease some of their oil production cuts.<\/p>\n
OPEC+ plans to phase out voluntary production cuts of 2.2 million bpd over the next year, starting in October. By December, over 500,000 bpd are expected to re-enter the market, with a total of 1.8 million bpd returning by June 2025.<\/p>\n
According to Reuters, the U.S. is purchasing an additional 3 million barrels of oil for the country\u2019s Strategic Petroleum Reserve (SPR), as announced by the Department of Energy on Monday. This move is part of a gradual replenishment effort following the largest sale ever in 2022.<\/p>\n
President Joe Biden had ordered the sale of 180 million barrels over six months in 2022 to control fuel prices after Russia\u2019s invasion of Ukraine.<\/p>\n
The latest US Personal Consumption Expenditure (PCE) data indicated that price pressures eased in April. Despite this, the report did not prompt a rate cut from the Federal Reserve, suggesting that the central bank may need more time to achieve its inflation goals.<\/p>\n
The higher interest rates are negatively impacting the US economic outlook and dampening the demand for oil.<\/p>\n
(Source: OANDA)<\/p>\n","protected":false},"excerpt":{"rendered":"
The drop in crude oil prices is attributed to OPEC+ announcing a gradual plan to ease some of their oil production cuts.<\/p>\n","protected":false},"author":4,"featured_media":14324,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1521,8625,1902,492,4601,8696,49,1540,2369,2190,4893,358,4057,52,2658,3017,8856,10110,67,899,1401,756,54,34,9597,55,5076,2057,12281,1493,56,4941,4895,11623,4059,4843,1670,5838,2089,1033,8872,375,4620,19,6928,12280,17,380,3872,18,360],"class_list":["post-14323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-1521","tag-april","tag-bank","tag-biden","tag-central-bank","tag-consumption","tag-crude-oil","tag-crude-oil-prices","tag-data","tag-decline","tag-demand","tag-energy","tag-expenditure","tag-federal-reserve","tag-fuel","tag-fuel-prices","tag-goals","tag-higher-interest-rates","tag-inflation","tag-interest","tag-interest-rates","tag-joe-biden","tag-marketpulse","tag-markets","tag-move","tag-oanda","tag-oil","tag-oil-prices","tag-oil-production-cuts","tag-opec","tag-opec-plus","tag-organisation","tag-output","tag-output-cuts","tag-phase-out","tag-president","tag-president-joe-biden","tag-price","tag-price-pressures","tag-prices","tag-production","tag-rate-cut","tag-report","tag-russia","tag-six","tag-spr","tag-ukraine","tag-us","tag-west-texas-intermediate","tag-world","tag-wti"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n