Oil extends losses as Opec+ and weak US data unnerve traders

illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:

🗞️ Driving the news: Oil prices continued to drop on Tuesday due to weak US economic data and Opec+ plans to increase production
• Brent crude fell 1.4% to $77.29 per barrel, while West Texas Intermediate decreased 1.2% to $73.35 per barrel
• These declines follow a 4% drop the previous day

🔭 The context: Opec+ agreed to restore a portion of its curtailed production, aiming to regain market share
• The US manufacturing sector reported weaker-than-expected activity in May
• Rising oil inventories and persistent inflation are stoking fears of prolonged weak global demand

🌍 Why it matters for the planet: Fluctuating oil prices impact energy markets and global economic stability
• Opec+ production adjustments can influence greenhouse gas emissions due to varying levels of fossil fuel extraction
• Energy market volatility underscores the need for sustainable energy investments

⏭️ What's next: The market will be more sensitive to economic data following Opec+'s decision
• Future production cuts could be adjusted based on market conditions
• Analysts predict oil prices might rise above $90 per barrel by September due to supply-demand imbalances

💬 One quote: "They have been holding back large volumes and now they are saying ‘we want our market share back’” (Bjarne Schieldrop, SEB's chief commodities analyst)

📈 One stat: Overall, brent crude prices have fallen 8% in the past week

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