The EU said in a statement that the changes were made to “avoid any negative consequences for food and energy security around the world”.
OPEC+
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, will meet on Wednesday, August 3, to decide production in September. Two of eight OPEC+ sources said in a Reuters poll that a modest increase for September would be discussed at the meeting, while the rest said output was likely to be held steady.
“While President Biden’s visit to Saudi Arabia did not result in any immediate oil deliveries, we believe the organization will gradually continue to increase production,” RBC Capital analyst Helima Croft said in a note.
The organization’s new secretary-general Haitham al-Ghais said on Sunday that Russia’s membership in OPEC+ is crucial to the success of the deal, Kuwait’s Alrai newspaper reported.
Depth
Macro figures published over the weekend showed a surprising decline in Chinese factory activity. PMI industry in the country was 50.4 points in July, while the market expected an index of 51.5. An index above 50 shows an increasing level of activity in the economy, but chief economist Iris Pang at ING believes an industrial PMI below 50 is likely in the coming months.
– China’s disappointing PMI for industry is the primary factor that weighed on oil prices today, says CMC Markets analyst Tina Teng, according to TDN Direkt.
– The data shows a surprising slowdown in economic activity, suggesting that the post-coronavirus recovery may not be as positive as previously expected in the world’s second-largest economy, dampening the demand outlook for crude oil markets.
Furthermore, crude oil production in Libya has picked up again after a series of disturbances which more than halved the supply, writes Bloomberg. Production has returned to 1.2 million barrels per year. today, a level last seen in early April, the country’s oil minister Mohamed Oun said in a telephone interview.
The Brent contract for October traded on Monday morning at $102.92 per barrel. barrel, while the WTI contract for September trades at USD 97.37 per barrel. barrel, down $1.25 from the previous close. In comparison, the contract traded at around USD 101.09 per barrel when Oslo Børs closed on Thursday afternoon.
The price difference between Brent oil and WTI oil for October delivery is now $7.36 per barrel. barrel.
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