Brent crude closed up 0.6% to $ 39.79 and WTI ended up gaining 1.3% to $ 37.29.
–
Oil prices rose on Wednesday after a volatile session marked by rumors about a minimum agreement between Russians and Saudis concerning the extractions.
A barrel of Brent North Sea crude for August delivery ended at $ 39.79, up 0.6% or 22 cents from Tuesday’s close. The barrel of London has crossed the $ 40 mark during the session, a first since March 6.
In New York, the American barrel of WTI for the month of July for its part took 1.3% or 48 cents, to 37.29 dollars. It’s its highest level since early March.
Developing sharply during the Asian session, prices weakened on the publication of information according to which the agreement to reduce the crude production of the members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies for May and June would only be extended by one month.
The most optimistic market observers expected three months.
“We have agreed that it is necessary to extend them for at least a month. Then we will look at the situation, “said a source familiar with the negotiations at the Russian agency TASS.
According to this source, the Saudi and Russian energy ministers are in constant contact and have “mutual understanding” of the situation.
Oil prices then made a roller coaster during the European and American sessions to finally end up.
The members of the cartel and its partners, including Russia, have imposed since May 1 a reduction in their production of 9.7 million barrels per day (mbd) in order to compensate for the fall in world demand for crude oil.
The question of the next summit of June 9 and 10, which could be brought forward to this week according to several observers, will be whether to extend it and for how long, since the April 12 agreement stipulates a reduction to 7 , 7 mbd from July 1st.
If OPEC + quotas are maintained, “the additional 1.2 mbpd reductions made by Saudi Arabia, Kuwait and the United Arab Emirates in early May will likely return to the market,” said Chris Midgley of S&P Global. Platts, a gesture likely to affect prices.
Meanwhile, investors did not respond positively on Wednesday to the US Energy Information Agency’s (EIA) weekly report on oil supplies in the United States last week.
The surprise drop in crude stocks (-2.1 million barrels) was offset by the increase in those of petrol (+2.8 million barrels) and the explosion of those of distilled products (+9.9 million barrels).
“As demand for petroleum products remains weak, gasoline reserves have grown well and those for distilled products have increased colossally,” said Matt Smith of ClipperData.
–
