Oil stopped falling

in oil the day before, several factors worked at once. Firstly, the market switched to new contracts, and secondly, correctional moods were stronger than “bull” drivers. The market was worried about the future world economy: what if the recession is really here, and the demand for energy carriers will decline smoothly. Against this background, quotes went to minimums in June.

The results of the OPEC+ meeting were completely neutral. Productive countries agreed to increase production in August by previously voiced 648 thousand barrels per day. No comments regarding future steps were received. The new meeting is scheduled for August 3.

Thus OPEC+ almost completely returned to the market the 10 million b/day seized in the spring of 2020. The cartel cannot increase prey, the countries have no free capacities. So, somewhere here there is a “ceiling” of the influence of OPEC+ on prices. Since the intrigue is absent, investors returned to the reactions to news and events. Global departure from risks and moved the prices down. Technically Brent can develop a rebound to $ 110, from where he will try to return to $ 116.50.

Leave a Reply

Your email address will not be published.