Brent oil futures for delivery in November on Friday morning during trading rose in price to $ 77.41 per barrel.
Kyiv. Ukraine. Ukraine Gate – September 25, 2021 – Economy
According to Bloomberg as of 11:49, the price of futures for Brent oil rose by 0.21%.
At the same time, the price of November futures for WTI oil rose to $ 73.32 per barrel, adding 0.03%.
Oil prices are rising on Friday for the fourth day in a row due to fears about the global supply after strong storms in the United States and the fact that China’s first public sale of state oil reserves led to a short-term surge in prices, writes Reuters.
On July 18, the Organization of the Petroleum Exporting Countries, Russia, and their allies, a group known as OPEC +, agreed to limit oil production until December 31, 2022. From August, production will be increased by 400 barrels per day – until the gradual lifting of production restrictions (currently 5.8 million barrels per day), by the end of September 2022.
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, 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 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, agreed on December 3 last year 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.
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Source: Ukrgate
