Oil prices decreased due to China’s weaker-than-expected purchasing managers’ index (PMI) and the stronger US dollar, which makes commodities more expensive for foreign buyers. Brent crude futures for August dropped by 0.99% to $72.98 per barrel, while US West Texas Intermediate crude fell by 1.3% to $68.56 per barrel. With OPEC+ holding its meeting on 4 June, major OPEC+ producers provide mixed signals on potential further reduced oil production. Banks HSBC and Goldman Sachs believe that China and the West’s stronger oil demand in the summer will cause a supply deficit later in the year.
