Brent crude went down to $74.41 per barrel

Oil quotations continued to decline on Tuesday. A day earlier, they fell to their lowest levels in more than a week on concerns about the outlook for demand due to the spread of new strains of coronavirus, Interfax reports.

By 8:20 a.m. Kyiv time, Brent August futures fell in price by $0.27 (0.36%) on the London ICE Futures exchange to $74.41 per barrel. On Tuesday, Brent fell in price by $1.5 (2%) to $74.68 per barrel. August futures expire on Wednesday, the more actively traded September contracts fell in price during trading on Tuesday by $0.26 (0.35%) to $73.88 per barrel. The day before, their cost fell by $1.24 (1.6%) to $74.14 per barrel.

By this time, WTI August futures were cheaper at electronic trading on the New York Mercantile Exchange (NYMEX) by $0.24 (0.33%) to $72.67 per barrel. During the previous session, the contract fell by $1.14 (1.5%) to $72.91 per barrel.

Both WTI and Brent closed Monday trading at their lowest levels since June 18, according to Dow Jones Market Data.

Experts believe that the market is pricing in the possibility of tougher travel restrictions amid the rising incidence of COVID-19 in most countries in Europe and Asia.

The spread of the more contagious strain of the "delta" COVID-19, according to analysts, may also be one of the reasons why OPEC+ countries will take a cautious approach to increase production, writes S&P Global Platts.

OPEC+ expects the supply deficit in the global oil market to continue this year if production remains at the same level, Bloomberg reported, citing data that will be reviewed by experts from the technical monitoring committee on Tuesday.

The coalition is discussing the possibility of easing restrictions on oil production in August amid a recovery in demand after the COVID-19 pandemic. The OPEC + Monitoring Technical Committee (JTC) will meet on Tuesday, the JMMC ministers will meet on June 30, and the OPEC and non-OPEC ministers will meet on July 1.

According to estimates, which will be presented by JTC and which Bloomberg managed to get acquainted with, in August demand will exceed supply by 1.7 million barrels per day (b / d). In the second half of the year, the deficit will average 1.9 million bpd. The committee will review and possibly approve these forecasts, the agency said.

At a meeting on Thursday, OPEC and non-OPEC representatives are expected to agree to increase production, but it is not yet clear how much. Analysts and traders surveyed by Bloomberg predict a gain of about 500,000 bpd. S&P Global Platts experts also call this the “most likely outcome” of the OPEC+ negotiations.

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