OPEC+ oil price gains reverse on US recession worries

Fears of a US recession have led to the reversal of oil prices after yesterday’s gains on the back of the OPEC+ production cut.

The front-month July Brent Oil futures contract was trading at $75.73 at the time of writing, lower than the close on Friday.

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Analysts attributed the losses to concerns about the health of the US recession later in the year.

“As the world’s largest economy shows more signs of heading for a contraction, with growth in the mighty services sector slowing more quickly than expected last month, worries are rising about the knock-on effect around the world,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown

“It’s helped erase crude oil gains, with the effects of Saudi Arabia’s production cut drowned out in the noise about slowing demand.  With oil prices ticking back down after Monday’s jump, it will bring relief to millions of Americans who have their eyes trained firmly on the fuel gauge as driving season gets underway and they fill up and head across the vast country for vacations.”

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