«Bears» have captured the oil market

Oil prices continued to decline on Tuesday morning – Brent quotes fell to $ 76.77 per barrel, WTI prices reached $72.48. Brent ended last trading at its lowest level since February 5, and WTI – since February 7.

Pressure on the market was exerted by the decision of OPEC+ to extend the current production quotas for the whole of next year. Additional restrictions of 2.2 million barrels per day, which were in effect in the first half of the year, will be maintained until the end of September. These restrictions will be gradually lifted every month over the next year, although this process may be suspended or cancelled depending on market conditions.

Warren Patterson, head of strategy at ING Groep's Commodity markets, noted that the gradual lifting of additional restrictions could lead to a small surplus of fuel on the global market next year. However, the oil-producing countries stressed that the increase in supplies could be suspended if market conditions require it.

At the end of the week, data on unemployment and job growth in the United States are expected to be published, which are closely monitored by the Federal Reserve System. Strong statistical data may increase the likelihood that the Fed will keep interest rates at the current level for a long time.