Brent oil futures for delivery in August on Monday morning during trading fell to $ 71.56 per barrel.
Kyiv. Ukraine. Ukraine Gate – June 07, 2021 – Economy
According to Bloomberg as of 8:26, the price of futures for Brent oil fell by 0.46%.
At the same time, the price of July futures for WTI oil fell to $ 69.36 per barrel, losing 0.37%.
Oil fell in price after reaching new multi-year highs on Monday, as investors expect this week the results of negotiations between Iran and world powers on a nuclear deal that is expected to increase oil supplies to the market, writes Reuters.
So, last Friday, Brent oil exceeded $ 72 per barrel for the first time since 2019, as OPEC + discipline on supply and recovery of demand removed concerns about the unequal rate of vaccination against COVID-19 around the world.
On April 2, the Organization of the Petroleum Exporting Countries, Russia, and their allies, a group known as OPEC +, agreed to ease production restrictions by 350,000 barrels per day in May, another 350,000 barrels per day in June, and another 400,000 barrels per day. barrels per day or so in July.
OPEC + agreed on June 1 that it would stick to its plan to increase supplies by 2 million barrels per day and the corresponding increase in the agreement in July. The next meeting will take place in early July.
It will be recalled that the world oil market experienced a “black Monday” on March 9, 2020 – the largest sharp drop in prices since 1991 with the start of the Gulf War. After that, the oil market experienced several more price collapses – 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. Thus, 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.
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Source: Ukrgate
