Oil prices they were down Monday when the merchants profited, and the Organization of the Petroleum Exporting Countries (OPEC) is considering to meet this week to discuss whether to extend the cuts of the record production beyond the end of June. Brent crude oil LCOc1 fell 15 cents, or 0.4%, to 37.69 usd per barrel in the first trading day of the contract, with August as the first month.
Crude oil West Texas Intermediate (WTI) CLc1 for July delivery was 35.36 dollars per barrel, with a fall of 13 cents, or 0.4%, at 0419 GMT. The fall in prices comes after the price of Brent oil and WTI first-month record in may, their largest monthly profit in years. The gains were driven by the crude oil production OPEC fell to its lowest level in two decades, with demand expected to recover as more nations come out of the locks by coronavirus. “The focus is very much on OPEC+” well, ” said the economist of OCBC, Howie Lee, referring to the OPEC and its allies, including Russia. The OPEC+ was agreed in April to reduce the production in a record number of 9.7 million barrels per day (bpd) in may and June, after the pandemic coronavirus raging with the demand. “We could see a pullback cautious in the prices (of crude oil) given that the prices of the products have not been brought up to date… but if OPEC+ becomes an extension of three months, there is the possibility that prices reach the level of 40 dollars,” Lee said. Even so, tensions between the united States and China weighed on global financial markets, while traders are also mindful of the unrest of the weekend that have engulfed the major cities of the united States.
Saudi Arabia proposes to extend the cuts from may and June until the end of the year, but has not yet obtained the support of Russia, according to said sources to Reuters.
Algeria, which currently holds the presidency of OPEC, has proposed ahead of a meeting of the OPEC+ scheduled for 9 and 10 June to facilitate the sale of oil to countries such as Saudi Arabia, Iraq and Kuwait. Russia has no objection to the meeting ahead of the 4th of June. “It has been interpreted widely which is likely to lead to an extension of the current cuts in production,” said the chief market strategist of CMC Markets, Michael McCarthy. “Oil prices are down slightly in our session, but they are still at elevated levels. I suspect that is the key driver of the prices of the Friday night and should keep prices reasonably well supported today.”
Meanwhile, the supply in North America is also fallingsince the data of Baker Hughes Co. showed that the count of oil and gas platforms of the united States and Canada fell to a historic low in the week to may 29.