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Oil supported by encouraging indicators for demand

In New York, WTI’s US barrel for September gained 74 cents, or 1.8% to close at $ 41.01.

Oil prices ended up on Monday after a start to the session in the red when the upturn in production from OPEC + members came into effect, aided by indicators giving hope for a recovery in demand for crude.

In London, a barrel of Brent from the North Sea for delivery in October, which is the first day of use as a benchmark contract, appreciated 63 cents or 1.4% to end at 44.15 dollars.

In New York, WTI’s US barrel for September gained 74 cents, or 1.8% to close at $ 41.01.

Over the whole month of July, Brent gained just over 5% and WTI rose 2.5%.

Indicators on the activity of the manufacturing sector have come to reassure market operators on the demand side.

It continued to recover in July in the United States, according to the purchasing managers index of the ISM association while it registered in China at its highest level for more than nine years that same month. .

In France, manufacturing activity also continued in July its growth path started in June, even if demand has “stagnated” because of “cautious” customers, reported Monday the firm IHS Markit.

The market also lived “the first working day of August, the month that traders were waiting for because it goes hand in hand with the return of part of the oil production of OPEC +” on the market, noted Bjornar Tonhaugen, of Rystad Energy.

To overcome the fall in demand for crude, the Organization of the Petroleum Exporting Countries (OPEC) and their allies, through the OPEC + agreement, had decided to reduce their production by 9.7 million barrels per day (mbd) to months of May and June.

A reduction in this drastic cut has already been made in July; since August 1, producers are expected to release a little more ballast, initially at 7.7 mbd, then at 5.8 mbd from January 2021 to April 2022.

The catching up requested from the poor students of the cartel who pumped more than their quota in the spring, if it is respected, is however likely to attenuate the increase in production in August.

Analysts are expecting a return to the market of around 1.5 mbd this month, an estimate consistent with the calculations of Saudi Energy Minister Prince Abdulaziz bin Salman following the latest interministerial meeting of Opec + mid-July.

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