Brent oil futures for delivery in July on Friday morning during trading rose to $ 69.78 per barrel.
Kyiv. Ukraine. Ukraine Gate – May 28, 2021 – Economy
According to Bloomberg as of 8:02, the price of futures for Brent oil rose by 0.46%.
At the same time, the price of July futures for WTI oil rose to 67.19 dollars per barrel, adding 0.51%.
Oil prices rose on Friday, driven by US economic data and expectations of a strong recovery in global fuel demand in the third quarter of this year, while fears about the consequences of any resumption of supplies from Iran decreased, writes Reuters.
In particular, the number of Americans who applied for new unemployment benefits fell to its lowest level since mid-March 2020, exceeding estimates.
On April 2, the Organization of the Petroleum Exporting Countries, Russia, and their allies, a group known as OPEC +, agreed to ease production restrictions in May-July.
In late April, OPEC + agreed to stick to its plan to increase supplies by 2 million barrels per day for the next three months. The next meeting will take place in early June.
It will be recalled that the world oil market experienced “Black Monday” on March 9, 2020 – the largest sharp drop in prices since 1991 with the start of the Gulf War. After that, there were several more price collapses in the oil market – against the background of the situation with the coronavirus and restrictions due to the pandemic in the world’s largest economies, leaving the market overwhelmed by a sharp decline in demand and excessive oil surplus.
On April 12, 2020, OPEC + member countries, including Russia, agreed to reduce oil production in a pandemic.
The concluded OPEC + production reduction agreement provided for a production limit of 7.7 million barrels per day until the end of 2020. In the April OPEC + agreement, producers were offered to reduce production to 5.8 million barrels per day from the beginning of 2021 to the end of April 2022. However, the conditions changed at the meeting on December 3, 2020.
OPEC + countries, including Russia, on December 3 last year agreed to maintain the restrictions on oil production, which were in force since the spring of 2020. However, with some relaxation. Yes, OPEC + has confirmed the agreement to return 2 million barrels to the market, but the return should be gradual, taking into account the market situation. The terms of the agreement were agreed to be reviewed monthly.
Read also: Brent Oil Trades Above $ 48. Per Barrel!
Source: Ukrgate
