Global Oil Prices Drop to Lowest Level Since Early February: Analyzing the Market Decline

Brent Crude Prices Fall Below $78 Per Barrel for the First Time Since February 6

On June 4, global oil prices experienced a significant drop, with Brent crude prices falling below $78 per barrel for the first time since February 6, 2024. This data was reported by the London-based ICE exchange.

As of 8:40 AM Moscow time, the cost of futures contracts for Brent deliveries in August decreased to $77.74 per barrel, marking a 4.15 percent decline from the previous trading session's close. September crude contracts dropped to $77.61 per barrel, a 4.03 percent decrease. Similarly, October deliveries were priced at $77.37 per barrel, a 3.92 percent reduction, while November contracts were at $77.09 per barrel, down by 3.83 percent.

This noticeable drop in global oil prices has been observed for the second consecutive day. On Monday, June 3, Brent crude prices momentarily decreased by 3 percent, reaching $79 per barrel. Analysts noted this as the most significant market decline since early February.

Senior expert at Freedom Finance Global, Sergey Pigarev, attributed this trend to the lack of consensus on quotas within the OPEC+ deal. He mentioned that during the recent alliance meeting, quotas for crude production for the UAE, Nigeria, and Russia were increased for 2025, while those for other members remained unchanged. This divergence in production quotas has contributed to the current downward pressure on oil prices.