With more supply set to hit the oil market this year, will demand be enough to absorb the excess? If not, crude inventories will rise, likely putting further downward pressure on prices.

A decline in oil prices would have significant implications, easing fuel costs for drivers and helping to curb inflationary pressures.

However, if prices fall too low, producers may cut output due to financial disincentives, potentially setting the stage for a sharp price rebound in the future.

The recent decision by OPEC+ members to extend production cuts underscores their concern over the strength of market fundamentals, evidenced by the increase in global crude oil inventories.

At the June 2 meeting, OPEC+ was widely expected to maintain its policy of reducing supply to support oil prices.