Oil prices drop on OPEC+’s plans to pump more – Market Recap for June 4
Oil prices took a hit on Tuesday as OPEC+ announced plans to increase supply, causing skepticism among traders about the move. The global market, which has already shown signs of weakness, saw a nearly $1 drop in oil prices. US crude oil prices fell for the fifth consecutive trading day, with the July West Texas Intermediate light, sweet crude future closing at $73.25 per barrel, down 97 cents.
In addition to the oil market, other commodity futures also experienced fluctuations on Tuesday. Corn and soybean futures traded choppily as traders considered factors such as US planting progress, crop conditions, adverse weather in Mexico, and cuts to soybean harvest forecasts in Brazil due to recent floods. Wheat futures were lower as concerns over frost and drought damage to the Russian wheat crop faded.
On the equity market front, US markets climbed after a Labor Department report indicated a drop in job openings to a three-year low in April. The Dow Jones Industrial Average dropped slightly, while the S&P 500 and Nasdaq Composite posted gains.
The US dollar index continued its downward trend after the Job Openings and Labor Turnover Survey report showed a decline in job openings. Meanwhile, US gold prices dropped more than 1% as investors awaited Friday’s US non-farm payrolls data.
Overall, the commodity and financial markets experienced a mix of ups and downs on Tuesday, with oil prices taking a hit on OPEC+’s plans to increase supply. Traders will be closely watching market developments in the coming days to gauge the impact of these changes on various sectors.
