Oil prices continue to fall – DELFI Business

August futures for Brent oil on the London Stock Exchange’s ICE Futures stood at $ 74.41 a barrel on Tuesday morning at $ 0.27, or 0.36 percent. lower than at the end of the previous trading session. On Monday, those deals fell $ 1.5, or 2 percent, to $ 74.68 a barrel. These trades expire on Wednesday, and more heavily traded trades in September fell $ 0.26, or 0.35 percent, to $ 73.88 a barrel during trading on Tuesday. The day before, their price had fallen to $ 1.24, or 1.6 percent, to $ 74.14 a barrel.

Meanwhile, the August futures price for WTI oil on the New York Mercantile Exchange (NYMEX) was $ 72.67 per barrel and was $ 0.244, or 0.33 percent. lower than at the end of the previous trading session. The value of these deals fell $ 1.14, or 1.5 percent, to $ 72.91 a barrel on Monday.

Both WTI and Brent oil prices closed on Monday at the lowest level since June 18, according to Dow Jones Market Data.

Experts believe that markets are responding to the likelihood of tightening travel restrictions, given the increased prevalence of COVID-19 in most European and Asian countries.

Analysts say the spread of the more contagious COVID-19 Delta strain may also be one of the reasons why OPEC + countries will take a cautious approach to increasing oil production, writes S&P Global Platts.

OPEC + expects the supply shortage in the global oil market to continue this year if production remains at the same level, Bloomberg said, according to data that will be reviewed by the organization’s technical monitoring committee experts on Tuesday.

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The cartel is considering easing restrictions on oil production in August as demand recovers from the crisis caused by the pandemic. The OPEC + Monitoring Technical Committee (JRC) will meet on Tuesday, the OPEC + Monitoring Committee (JMMC) ministers on 30 June and the OPEC and non-OPEC ministers on 1 July.

According to estimates provided by the JRC and made available to Bloomberg, oil demand will exceed supply by 1.7 million in August. barrels per day. In the second half of the year, the deficit will average 1.9 million. barrels per day. The committee will review and possibly approve these forecasts, the agency said.

At Thursday’s meeting, OPEC and non-OPEC representatives are expected to agree to increase production, but it is not yet clear how much.

Analysts and traders surveyed by Bloomberg forecast about 500,000. increase in barrels per day. S&P Global Platts experts also call it the “most likely outcome of the OPEC +” negotiations.

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