Global crude oil prices fell despite the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, extending their production cut policy on Tuesday, July 2nd, in Vienna, Austria. This meeting agreed to maintain production cuts until 2020.
Brent crude oil futures for September delivery fell by 4% between June 28th, 2019, and today's market opening (July 2nd). The opening price for Brent crude today was US$62.81 per barrel.
Meanwhile, US West Texas Intermediate (WTI) crude oil futures for August 2019 also weakened following the OPEC meeting on July 2nd, 2019. WTI opened today at US$56.56 per barrel, down approximately 5% compared to previous trading days, which saw prices around US$59 per barrel.
Previously, on Saturday, June 29th, Russian President Vladimir Putin and Saudi Arabia agreed to extend the production cut policy by 1.2 million barrels per day, or 1.2% of global demand. Although OPEC and its allies are trying to boost oil prices, weak demand persists due to the global economic slowdown.