On Saturday, representatives of the countries included in the OPEC+ cartel managed to agree on the extension of the restrictions on oil production. It also became known that those countries that had reduced production in May were not required to compensate for that volume until the end of summer.
The market has reacted positively to cartel decisions. At 8.20 Moscow time, August futures for Brent crude oil increased 2.13% and traded at around $ 43.2. At the last trading session on Friday, the asset showed an increase of 5.8%. The weekly growth has totaled 11.8%.
American crude oil kept pace too. At the same time, July contracts for WTI increased 1.34% and cost $ 40.08 per barrel. The asset closed the previous session with an increase of 5.7% for the week the futures have grown up by 11.4%.
A month and a half ago, the OPEC+ countries managed to agree on a reduction in oil production. So, in May-June, the reduction was to amount to 9.7 million b/d, and from July – 7.7 million b/d. Iraq did not comply with the terms of the agreement, but under pressure from Russia and Saudi Arabia they agreed to compensate for surpluses. In the near future, Saudi Aramco plans to significantly increase the price of “black gold”. All of these measures together should help balance supply and demand in an unstable market.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group