Brent is too active
at a meeting on Thursday, OPEC+ decided to increase quotas for oil production to 648 thousand barrels per day instead of a standard step of 432 thousand b/s. Cartel redistributed the load on quotas so that countries could quickly increase production. We are talking about the period of two months: July and August of this year. The main load will be on Saudi Arabia – in fact, only here there are some free capacity for production. They are reserve, but right now it is worth introducing them. For other countries, expansion Quota is more formal.
on the one hand, we can say that Saudi Arabia takes a step towards the United States and opens to the dialogue. Earlier, Washington has repeatedly mentioned that the Saudis could have mined raw materials more actively. On the other hand, the OPEC+ decision will partially remove a speculative voltage from the market – the parties consulted only 10 minutes, which means that there are no contradictions between them. But strategically this will not solve anything: the capabilities of the cartel are limited.
data from the US Ministry of Energy on stocks played in The benefits of the “bulls”. Oil reserves in a week fell by 5.1 million barrels when waiting for a reduction of 1.4 million barrels. The extraction has survived at the mark of 11.9 million barrels per day. Technically, Brent can form a new growth wave to $ 121.33. After the market works out this goal, correction actualizes the level of support for $ 118. In the future, a new growth phase of $ 128.80 through $ 125.00 is not excluded.