Oil Prices Pullback from Post-OPEC Rally

Oil prices have paused this week after the strong, post-OPEC rally saw Brent close just shy of $80 per barrel. Saudi Arabia agreed to increase production at the June meeting in order to cap the recent strength in oil prices and protect the consumer spending of developed economies.

Saudi Arabia confirmed this week that they had pumped 10.48 million barrels in June, representing an increase of 500,000 barrels per day in additional production, which will help to replace supply losses from the Venezulean economic crisis, and the renewed Iranian sanctions Equity markets have been under pressure this week as the threat of escalating trade wars have continued..

U.S. futures prices surged through $75 a barrel for the first time since 2014 but have since slipped toward $73 this week, as the EIA also reported a slight expansion in inventories. The move by Saudi has inflamed tensions with Iran over the unity of OPEC and this is likely to provide geopolitical support for price in the next months. 
Equity markets have been under pressure this week as the threat of escalating trade wars have continued with China stating it will retaliate to U.S. trade tariffs that were triggered today. The Chinese Yuan has been falling against the U.S. Dollar in the last few months, which would dampen the effect of any trade tariffs, however the currency move will likely not be missed by President Trump and there is also continued strain on the relationship between the U.S. and the European Union which is keeping markets on edge.