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Tengrinews.kz – Global oil prices continue to decline as Brent crude dropped below $60 per barrel.
As of 08:20 Astana time, July futures for Brent crude on the London ICE exchange fell by 3.60 percent to $59.08 per barrel. June futures for WTI crude also decreased by 3.89 percent, reaching $56.02 per barrel.
Why are oil prices falling?
One of the key factors behind the decline is the decision by OPEC+ to boost production. On May 3, the oil exporters' alliance announced plans to increase output by 411,000 barrels per day in June, marking the second consecutive hike and raising concerns about oversupply in the market.
At the same time, global demand remains sluggish. Economic slowdowns in countries like Saudi Arabia and China have reduced oil consumption, further weighing on prices.
Geopolitical tensions have also added to market uncertainty. Escalating threats from Israel towards Iran, along with political instability in Mexico, have heightened investor concerns.
Adding to the pressure are growing fears of an economic slowdown, fueled by U.S. plans to impose new tariffs, which analysts say could push the global economy closer to recession.
Experts warn that if these trends continue, oil prices may face further declines, especially if economic growth in major economies remains weak.
