Oil prices fall to lowest since February
The price of oil is bouncing near levels around the time of the Russian invasion of Ukraine since Saudi Arabia, Russia and other major oil producers agreed to a small supply boost.
Oil prices have hit near year lows, though the drops appear to not be holding.
The price of Brent crude oil went below $94 a barrel last week and then again on Monday. It rebounded to just above $98 a barrel yesterday before falling below $94 again earlier today. As of 1:00 pm ET, the price was back above $97 a barrel. The last time Brent crude oil prices hit such lows was February around the start of the Russia-Ukraine war, according to market data.
Why it matters: The price drops follow the Organization of the Petroleum Exporting Countries and Russia, the OPEC+ alliance, agreeing last week to a relatively modest production increase of 100,000 barrels a day for September. They also boosted production by 648,000 barrels a day in July and August.
Saudi Arabia is the largest oil producer in OPEC, and part of the purpose of US President Joe Biden’s trip to the kingdom last month was to convince the country to pump more oil. Biden left without a hard agreement on the matter.
