Global Oil Prices Weaken to US$75.17 per Barrel (Monday, June 28, 2021)

Global oil prices weakened in trading on Monday, June 28, 2021, until 10:22 WIB. Brent crude oil was sold at US$75.17/barrel, down 0.4% from the previous trading session. West Texas Intermediate (WTI) crude oil fell 0.2% to US$73.97/barrel.

Quoting Reuters, oil prices rose to their highest level since late October 2018 on Monday. The dispute over the nuclear deal between the United States and Iran was the trigger, causing delays in Iranian oil exports. Meanwhile, investors are still awaiting the results of this week's meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

Oil prices continued to rise for the fifth consecutive week last week. This coincided with the recovery of the economy and increased travel during the summer in the northern hemisphere. Meanwhile, crude oil supplies remain constrained as OPEC and its allies continue to cut oil production.

OPEC+ has been producing 2.1 million barrels per day since May to July. This plan is part of the easing of oil production restrictions that occurred last year. OPEC+ will meet on July 1 and potentially increase supply in August due to rising oil prices, following a recovery in demand.