Oil prices continue to decline

The cost of October futures for Brent oil on the London stock exchange ICE Futures by 9:09 a.m. is $43.85 per barrel, which is $0.3 (0.68%) below the price at the close of the previous session. As a result of trading on Monday, these contracts rose by $0.63 (1.5%), Interfax-Azerbaijan reports.

By this time, futures for WTI crude oil for September at the electronic trading of the New York Mercantile Exchange (NYMEX) dropped in price by $0.26 (0.63%) to $40.75 per barrel. The day before, the value of these contracts increased by $0.74 (1.8%).

Investors continue to follow the news about the beginning of the third phase of trials of the drug to prevent COVID-19, which is being developed by the American pharmaceutical company Eli Lilly&Co.

At the same time, OPEC+ countries from August 1 moved to the second stage of the deal, which provides for a partial recovery of production – by 2 million barrels per day (bpd). However, taking into account compensation from countries that did not fulfill their obligations at the first stage, production will grow by about 1.5 million bpd, MarketWatch writes.

"Investors fear that increased production will reverse the recent recovery in oil prices, especially amid rising coronavirus cases around the world and a continuing decline in demand," Sun Global Investments said.

Earlier it was reported that Iraq in July violated its obligations for oil production under OPEC+ agreement.

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