Brent oil futures for delivery in October morning on Thursday morning during trading rose to $ 70.59 per barrel.
Kyiv. Ukraine. Ukraine Gate – August 05, 2021 – Economy
According to Bloomberg as of 8:58, the price of futures for Brent oil rose by 0.30%.
At the same time, the price of September futures for WTI oil rose to 68.40 dollars per barrel, adding 0.37%.
Oil prices rose on Thursday, sparking tensions in the Middle East. Tensions in the region are likely due to an Iranian attack on an oil tanker in the Persian Gulf.
At the same time, oil prices failed to recover most of the losses of the previous day after an unexpected increase in fuel stocks in the United States, the world’s largest oil consumer.
On July 18, the Organization of the Petroleum Exporting Countries, Russia, and their allies, a group known as OPEC +, agreed to limit oil production until December 31, 2022. From August, production will be increased by 400 barrels per day – until the gradual lifting of production restrictions (currently 5.8 million barrels per day), by the end of September 2022.
It will be recalled that the world oil market experienced a “black Monday” on March 9, 2020 – the largest sharp drop in prices since 1991 with the start of the Gulf War. After that, there were several more price collapses in the oil market – against the background of the situation with the coronavirus and restrictions due to the pandemic in the world’s largest economies, leaving the market overwhelmed by a sharp decline in demand and excessive oil surplus.
On April 12, 2020, OPEC + member countries, including Russia, agreed to reduce oil production in a pandemic.
The OPEC + production reduction agreement provided for a production limit of 7.7 million barrels per day until the end of 2020. In the April OPEC + agreement, producers were offered to reduce production to 5.8 million barrels per day from the beginning of 2021 to the end of April 2022. However, the conditions changed at the meeting on December 3, 2020.
OPEC + countries, including Russia, agreed on December 3 last year to maintain the restrictions on oil production, which were in force since the spring of 2020. However, with some relaxation. Yes, OPEC + has confirmed the agreement to return 2 million barrels to the market, but the return should be gradual, taking into account the market situation. The terms of the agreement were agreed to be reviewed monthly.
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Source: Ukrgate