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Oil prices fell to their lowest levels in two weeks, on Wednesday, due to expectations that the OPEC+ group will ease restrictions on supplies during its meeting later this week, while economies begin to recover from the Corona virus crisis.
OPEC Secretary General Mohammed Barkindo said, “The prospects for oil demand appear more positive, especially in Asia.”
Brent contracts for the nearest maturity ended the trading session down 99 cents, or 1.6 percent, to record at settlement $62.70 per barrel, which is its lowest level since February 12.
The global benchmark crude oil fell about seven percent from its highest level in 13 months, which it recorded last week.
US benchmark West Texas Intermediate crude contracts fell 89 cents, or 1.5 percent, to reach $59.75 per barrel upon settlement, which is the lowest closing level since February 19, extending its losses to about six percent since February 15, when it closed at the highest level since May 2019.
Oil’s rise was faded by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the group known as (OPEC+) will produce more oil from April as the current deep supply cuts ease.
OPEC+, which will meet on Thursday, may discuss allowing up to 1.5 million barrels per day of crude to return to the market.