Oil prices fell in Asian markets on Monday as concerns about Middle East supply problems began to fade. The main reason for the decline was an expected increase in OPEC+ oil production.
Traders had previously reduced the “risk premium” they had added due to tensions between Iran and Israel. Now that those tensions have eased and more oil is expected, prices are falling.
Although oil prices rose earlier this month due to the Iran-Israel conflict, they are still set to rise more than 5% in aggregate terms for June.
Meanwhile, new economic data from China, the world’s largest oil importer, showed industrial activity contracted in June. This sent mixed signals to oil markets.
The conflict began when Israel and then the United States attacked Iran’s nuclear sites, sending oil prices to a year-to-date high. But soon, the US helped broker a ceasefire,
Earlier this year, OPEC+ began increasing production again after two years of cutting production.
