Brent oil futures for delivery in January on Friday .
According to Bloomberg as of 8:50, the price of futures for Brent oil rose by 0.05%.
Ukraine , ukraingate , 5 , november , 2021 _Economy
At the same time, the price of December futures for WTI oil rose to $ 79.25 per barrel, adding 0.56%.
Details
On Friday, oil prices rose by about 1%, showing a partial recovery after OPEC + producers rejected the US call to increase supply and instead maintained plans to gradually restore oil production, stopped by the pandemic, writes Reuters.
The OPEC + group, which brings together the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, including Russia, agreed on Thursday to stick to its plan to increase oil production by 400,000 barrels per day from December, ignoring US President Joe Biden’s appeals. for additional production to cool rising prices.
Oil prices recently reached seven-year highs, but fell earlier this week due to rising US inventories and signs that high prices could spur supply in other countries.
What was before
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. Production has been increased by 400 barrels per day since August 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 relaxations. 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.
Source: ukrgate
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