Oil prices went down due to results of OPEC+ meeting

On Thursday, oil prices decreased after the decision of the ministers of the OPEC+ states to maintain the plan to increase oil production by 400 thousand barrels per day (bpd) per month, Interfax reports.

Ministers noted that while the impact of the COVID-19 pandemic continues to raise some uncertainty, market fundamentals have improved and the commercial oil reserves of the Organization for Economic Cooperation and Development (OECD) countries continue to fall as the recovery accelerates.

Thus, in October production will be increased by the OPEC+ states by 400 thousand bpd.

The cost of Brent November futures on the London ICE Futures exchange by 8:15 am Kyiv time on Thursday amounted to $71.38 per barrel, which is $0.21 (0.29%) below the price at the close of the previous session. As a result of trading on Wednesday, these contracts fell by $0.04 (0.1%) to $71.59 per barrel.

The price of WTI crude oil futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) by this time amounted to $68.33 per barrel, which is $0.26 (0.38%) lower than the final value of the previous session. On Wednesday, the value of contracts increased by $0.09 (0.1%) up to $68.59 per barrel.

"The OPEC+ countries did not surprise the market, keeping production, and oil is getting cheaper, as fears associated with the spread of new strains of COVID-19 remain, this puts pressure on global demand for oil," commodity analyst VI Investment Corp. Vin Sungchil Yun said. "WTI will continue to trade above $60 per barrel, but it will be difficult for it to rise above $70 per barrel," Bloomberg quoted the expert as saying.

Tags: oil, USA, oil production, coronavirus, OPEC+, OPEC, negotiations, price, petroleum products, oil deliveries, COVID-19, economy

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