Oil prices are rising on Monday after a sharp drop last week.
Over the weekend, some of the oil producers operating in the Gulf of Mexico suspended operations again due to the onset of another hurricane, which could lead to a temporary decrease in supplies from the region, experts say AxiCorp.
Meanwhile, Libya plans to restore oil production, which will ensure the flow of raw materials to the market while maintaining low demand. Earlier it was reported that the commander-in-chief of the Libyan National Army (LNA) Khalifa Haftar personally promised to “reopen” the energy sector of Libya, writes Dow Jones.
British oil company BP (LON: BP) believes that oil demand may never return to levels that were before the coronavirus pandemic. The most optimistic scenario outlined in the BP report suggests that global oil demand will be little more than flat over the next two decades, as the global energy sector moves away from fossil fuels.
The focus of the oil market is still the OPEC + negotiations. A meeting of the OPEC + Technical Monitoring Committee (JTC) is scheduled for Wednesday, and a meeting of the OPEC + Ministerial Monitoring Committee (JMMC) is scheduled for Thursday.
Individual OPEC + countries still do not fully fulfill their promise to cut production, and this issue is likely to be discussed by the monitoring committee this week, writes Blomberg.
The cost of November futures for Brent oil on the London stock exchange ICE Futures by 8:29 Moscow time on Monday is $ 39.92 per barrel, which is $ 0.09 (0.23%) higher than the price at the close of the previous session. As a result of trading on Friday, these contracts fell by $ 0.23 (0.6%).
The price of WTI crude oil futures for October in electronic trading of the New York Mercantile Exchange (NYMEX) by this time is $ 37.50 per barrel, which is $ 0.17 (0.46%) higher than the level of the previous session. On Friday, these contracts gained $ 0.03 (0.08%).
Last week, Brent fell 6.6%, WTI – 6.1%. Prices for both grades of oil fell for the second week in a row amid concerns about continued weak demand, as well as rising US inventories.