Crude Oil analysis – Oil prices dipped under $74 on Thursday, breaking a rising trend. OPEC faced internal disagreement, worsened by Angola leaving after 16 years. This raised questions about OPEC’s power to manage global prices amid disagreements on oil production levels. This year might see the first drop in oil prices since 2020.
High US oil production and doubts about OPEC’s ability to control the market are the main reasons. According to the Energy Information Administration, US oil production hit a new high of 13.3 million barrels daily last week. Meanwhile, the Red Sea conflict, with Houthi attacks on shipping, is causing trade problems. But so far, this hasn’t greatly affected oil supply, as most Middle East oil passes through the Strait of Hormuz.