Brent is trading below $42 per barrel

The September futures price for Brent oil futures on the London ICE Futures exchange by 8:26 a.m. Moscow time on Monday amounted to $42.93 per barrel, which is $0.31 (0.72%) lower than the closing price of the previous session. It is reported by Interfax.

As a result of trading on Friday, these contracts rose by $0.89 (2.1%), to $43.24 per barrel.

Futures for WTI oil in August at electronic trading on the New York Mercantile Exchange (NYMEX) by this time fell in price by $0.33 (0.81%) to $40.22 per barrel. On Friday, the value of these contracts increased by $0.93 (2.4%), to $40.55 per barrel.

Following the results of last week, WTI crude oil fell 0.3%, while Brent added 1%.

“The record high level of stocks in the United States and the second wave (coronavirus – ed.) in the world contributed to the assumption that OPEC+ may make an unexpected decision this week to extend the reduction by 9.7 million bpd next month, but we believe this is unlikely given that prices have nearly doubled compared to the low level recorded in April,” JMMC analysts say.

Amid signs of economic recovery, sources familiar with the negotiations also report a low likelihood of an extension of current cuts, the agency said. This means that in August the reduction will amount to 7.7 million bpd.

At the same time, the number of new cases of coronavirus infection in the United States over four days exceeded 60 thousand, writes S&P Global Platts. Brazil, India and South Africa are also seeing an increase in the growth of new cases.

Recall, the Secretary General of the Organization of Petroleum Exporting Countries (OPEC) said that in China there was still enough space in the oil storage facilities.

It was previously reported that Iran has reduced oil production to a minimum over the past 40 years.

Tags: contracts, oil, hydrocarbon production, EU, USA, energy market, Азия, добыча нефти, коронавирус, foreign affairs, ОПЕК+, OPEC, agreement, oil products, oil deliveries, energy sector, quarantine, Brent, WTI, pandemia, COVID-19, oil reserves, economy, oil production

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