(New York) Oil prices ended higher on Friday as investors braced for OPEC + decisions and continued Iran nuclear talks in Vienna next week.
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A barrel of North Sea Brent for August delivery ended at $ 76.18 in London, up 0.82% or 62 cents from Thursday’s close.
In New York, a barrel of WTI for the same month rose 1.02%, or 75 cents, to $ 74.05.
These are the highs at the close for the two benchmark contracts since October 2018 and their fifth consecutive weekly increase.
“Price sentiment and dynamics remain extremely positive,” comments Eugen Weinberg, analyst at Commerzbank.
Next week will be busy for market players.
On Thursday, the thirteen members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies via the OPEC + agreement will meet to decide on their production levels from August “and potentially beyond”, anticipates Stephen Brennock of PVM.
“It goes without saying that the outcome of this meeting will set the tone for oil prices for the summer months,” he continues, indicating that “market observers are betting mainly, and rightly, on a further reduction cuts ”to which the producers bind themselves.
The crude market is also looking towards Vienna, where Iran is still engaged in difficult negotiations involving Britain, China, Germany, France and Russia to find common ground with the states. -United on its nuclear program.
They believe a deal is still possible, although the talks have yet to bring positions closer, a State Department official said on Thursday.
The election of the ultra-conservative Ebrahim Raïssi last Saturday as President of the Islamic Republic “does not affect our determination to reach an agreement,” he said.
For oil investors, the question is whether the sanctions which currently prevent Iran from exporting its production will be lightened, which would drastically change the market balance and could weigh on prices.
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