Oil prices drop ahead of OPEC+ meeting

New Delhi: Wednesday saw a decline in oil prices ahead of an OPEC+ meeting where members are anticipated to maintain output with limited spare capacity due to concerns about a potential impact on demand from a global economic downturn.
At 11:30 GMT on Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, which includes Russia, will meet.

Prior to the conference, OPEC+ reportedly reduced its prediction for this year, lowering its estimate of the market surplus by roughly 200,000 barrels per day (bpd), to 800,000 bpd. Investors are anxiously awaiting the company’s production schedule in a competitive market.

For the week ending July 29, according to data from the American Petroleum Institute, U.S. crude stockpiles increased by nearly 2.2 million barrels.

The safe-haven attraction of gold increased as U.S.-China tensions increased, although gains were restrained by stronger U.S. Treasury yields.
The precious metal maintained below its one-month high from the previous session.
China implemented restrictions on Taiwanese imports of fruit and fish as retaliation for U.S. House Speaker Nancy Pelosi’s trip to Taiwan, which set off a diplomatic uproar.

The most prominent elected American official to visit Taiwan in the previous 25 years was Pelosi. Record interest rate increases by central banks throughout the world have both helped to exacerbate inflationary pressures while also providing some relief to the struggling economy. On Thursday, the Bank of England is also anticipated to increase its reference rate by 50 basis points.

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