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Oil at its highest since March after US stocks and OPEC +

Brent ends on a gain of 2.1% to 43.79 dollars and the WTI closes above 41 dollars thanks to a rise of 2.3%.

Oil prices rose to their highest in 4 months on Wednesday, helped by a sharp drop in crude stocks in the United States, and did not falter after the decision of the main exporting countries to gradually reduce their production quotas .

Brent North Sea crude for September delivery ended at $ 43.79 in London, up 2.1% or 89 cents from Tuesday’s close.

In New York, the American barrel of WTI for the month of August gained 2.3% or 91 cents, to 41.20 dollars.

Close to equilibrium in the middle of the European session, prices have recovered on the publication by the American Energy Information Agency (EIA) of a surprise drop of 7.5 million barrels of crude stocks in the United States, the largest decline since December 2019.

The prices were maintained after the meeting of the members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, known under the banner Opep +, who decided to maintain the planned course of the reduction of their production cuts d ‘black gold.

With a volume of 9.6 million barrels per day (mbd) currently, these cuts will go “to a total of 8.1 to 8.2 mbd in August”, said the Saudi Minister of Energy, the prince Abdelaziz ben Salmane, at a press conference after the meeting.

The difference with the 7.7 mbd registered in the initial calendar is explained by the compensations of the countries which did not respect their quotas, and possible additional voluntary contributions to the image of those assumed by Saudi Arabia in the month of June.

The move was prompted by “encouraging signs of improvement as economies around the world recover,” said a statement posted on the cartel website after the meeting.

“The signs of recovery are clear,” it is written below.

This increase in production is not a surprise for the market because “no one can really expect OPEC + to maintain the current reductions in August,” said Paola Rodriguez-Masiu, analyst at Rystad, earlier. Energy.

However, said Bart Melek of TD Securities, “the market needs to be convinced that demand will rebound smoothly and that the risks of a second wave of Covid-19 infections will derail it.”

“Investors must also have proof that OPEC + fully respects its commitments and have confidence that the United States will not increase their production,” added the expert.

Black gold stepped up its gains late in the session after an article in the Bloomberg agency said that Donald Trump had no plans to impose further punitive measures against China in the immediate future.

Sino-US tensions escalated this week after Donald Trump promulgated a law on Tuesday providing for sanctions against Beijing’s “repression” in Hong Kong and the announcement of the end of the preferential regime granted by the United States to autonomous territory, major international financial center.

China has threatened Washington with reprisals.

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