Oil prices decline ahead of OPEC+ meeting

On Tuesday, oil prices are decreasing, the market is following the recovery in production in the Gulf of Mexico after Hurricane Ida, and is also waiting for the next OPEC + meeting, Interfax reports.

As reported, the OPEC+ countries at the end of July decided to increase production from August by 400 thousand bpd each month. At the same time, they agreed to hold monthly consultations to assess the market situation and the feasibility of increasing production. The next meeting is scheduled for September 1.

The cost of October futures for Brent oil on the London stock exchange ICE Futures by 8:15 am Kyiv time on Tuesday amounted to $73.19 per barrel, which is $0.22 (0.3%) below the price at the close of the previous session. As a result of trading on Monday, these contracts rose by $0.71 (1%) up to $73.41 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 $69.06 per barrel, which is $0.15 (0.22%) below the final value of the previous session. On Monday, the value of these contracts increased by $0.47 (0.7%) to $69.21 per barrel.

The decision to increase production, agreed last month by the OPEC+ countries, could be reconsidered at a meeting on September 1, Kuwait Oil Minister Mohammad Abdullatif al-Fares told Reuters last Sunday.

“The market will be watching the OPEC + meeting closely to see if ministers believe that oil demand will not recover as quickly as they expected,” said commodities analyst Australia & New Zealand Banking Group Ltd. Daniel Hines.

As reported, oil spills on the Mediterranean coast are being liquidated in Syria due to an accident at a thermal power plant.

Tags: oil, oil production, coronavirus, OPEC+, negotiations, price, volumes, petroleum products, oil deliveries, economy, oil market

Read also

Naftogaz wants to increase oil production
Brent went up to $84.5 per barrel
Brazilian president wants to privatize oil and gas company Petrobras