Brent Set to Register First Monthly Increase This Year

There was little change in Brent crude prices in early trading today, Friday, but the crude is on track to record its first monthly increase of the year as fears that raising interest rates would slow demand have eased, driven by a sharp decline in oil inventories and the "OPEC+" alliance's plans to reduce production. Brent crude futures for September delivery fell by 19 cents or 0.3 percent to $74.32 per barrel by 00:15 GMT. The nearest term contract, which is less frequently traded and expires today, decreased by 12 cents to $74.22 per barrel. West Texas Intermediate crude lost 21 cents or 0.3 percent, recording $69.65 per barrel. Both benchmarks closed slightly higher yesterday, Thursday, and are headed towards a more than two percent increase for the entire month. The market is concerned about supply shortages after the U.S. Energy Information Administration reported that crude inventories fell by 9.6 million barrels in the week ending June 23, which far exceeded analysts' expectations in a Reuters survey of a decline of 1.8 million barrels. This follows a Saudi plan to cut production by one million barrels per day starting in July and a broader agreement by the "OPEC+" alliance to limit supplies through 2024.