The market is focused on the meeting of the OPEC + monitoring committee, which was unexpectedly postponed for a day
World oil prices, which recently reached $75 per barrel of Brent for the first time in a long time, exceeded the $76 mark. According to Investing, this is the maximum since October 2018, that is, for almost three years. The demand for black gold is growing as coronavirus restrictions are lifted in countries with the largest economies. At the same time, OPEC+ members could not agree on quotas for August, which are used to limit the supply of raw materials.
The price of September Brent crude futures on the London ICE Futures exchange was $76.33 per barrel. This is 2.3% higher than at the close of the previous trading session.
The price of August WTI oil futures for June at electronic trading on the New York Mercantile Exchange (NYMEX) by this time was $75.82 per barrel, 3.2% higher than the level at the close of the previous session.
Oil prices are currently in the final stage of recovery, according to Norbert Rucker, chief economist and head of the Next Generation Julius Baer research group.
“The sharp rise in oil prices is a consequence of high demand for oil and politically limited supplies.
However, at the price level of $75 per barrel, a special dynamic comes into play… In the near future, prices risk exceeding our benchmarks, as stocks in storage are rapidly depleted. Oil prices may indeed still jump in the near future, but in the medium and long term, we expect lower prices, “ Rucker explained.
According to him, the OPEC+meeting is at the center of the market’s attention. However, the meeting of the monitoring committee was unexpectedly postponed for a day.
The OPEC+ states unexpectedly postponed a meeting of the monitoring committee for a day, which was supposed to make recommendations on increasing production from August.