Global markets are experiencing a prolonged decline in oil prices, which has now lasted for four days. As of 06:35 GMT on May 23, Brent crude oil futures have decreased by 48 cents, or 0.8%, to $63.96 per barrel. At the same time, West Texas Intermediate (WTI) contracts have also fallen by 48 cents, or 0.8%, to $60.72 per barrel.
This is reported by Finway
Experts attribute this price drop to a potential increase in oil production in July by OPEC+. According to incoming information, the price of Brent has decreased by 2.3% over the week, while WTI has lost 2.9%.
“Both contracts have reached their lowest level in more than a week following reports that OPEC+ is considering another significant increase in production. Among the options being considered is a production increase of 411,000 barrels per day in July.”
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In this context, analysts believe that oil prices may continue to decline. Specifically, it is forecasted that in the fourth quarter of 2025 (October-December), the price of Brent could drop to $59 per barrel. At the same time, the decrease in oil prices has contributed to an increase in oil inventories in the U.S. to levels observed during the COVID-19 pandemic. However, despite concerns regarding the rising inventories, some investors hope that the approaching summer travel season will lead to a reduction in inventories, which would limit further price declines.
The Impact of Oil Prices on Ukraine
Analysts note that the price of gasoline in Ukraine may change significantly in the near future. In particular, there is a possibility of both increases and decreases. Dmitry Lyoshkin, founder of the Prime Group of Companies, believes that everything will depend on the prices of Brent crude oil. If oil prices “stay around the $62 per barrel mark for several weeks,” a decrease in gasoline prices at gas stations in Ukraine by 2 hryvnias per liter can be expected. However, if oil quotes return to $70 per barrel, gasoline prices may increase on average by 1 hryvnia per liter.