Oil prices decline after last week's rise

Oil prices decline after last week's rise

Oil prices decline after last week's rise

Oil prices fell on Monday after the highest jump since June last week, thanks to OPEC + countries' confirmation of their commitment to cut production in full compliance with previous agreements.

The market continues to monitor the situation with the incidence of COVID-19 in the world, as it remains sensitive to the pace of recovery in global economic activity, experts say AxiCorp.

Following the meeting of the OPEC + Monitoring Ministerial Committee (JMMC), held last week, it was announced that the deadline for compensating for the unreduced OPEC + production volumes until the end of 2020 was extended. The Minister of Energy of Saudi Arabia, Prince Abdulaziz bin Salman, expressed confidence that in September-December 2.4 million bbl / d of the OPEC + volumes that have not been reduced will be compensated.

“If additional cuts are made, there will be no oversupply in the oil market, which many feared, and stocks will be significantly reduced,” said Eugene Weinberg, an analyst at Commerzbank (DE: CBKG).

JMMC advised countries involved in the oil limitation deal to be prepared to take further measures to stabilize the market if necessary. “In the current environment, JMMC emphasized the importance of proactive and proactive action and recommended that participating (in the OPEC + deal) countries be ready to take further action if necessary,” the OPEC said in a statement following the committee meeting.

According to the Worldometer portal, in the world since the beginning of the pandemic, 31.22 million people have been infected.

The cost of November futures for Brent oil on the London stock exchange ICE Futures by 9:18 Moscow time on Monday is $ 42.80 per barrel, which is $ 0.35 (0.81%) below the closing price of the previous session. As a result of trading on Friday, these contracts fell by $ 0.15 (0.4%), to $ 43.15 per barrel.

The price of futures for WTI crude oil for October in electronic trading of the New York Mercantile Exchange (NYMEX) by this time is $ 40.75 per barrel, which is $ 0.36 (0.88%) higher than the level of the previous session. On Friday, futures rose $ 0.14 (0.3%) to $ 41.11 per barrel.

Over the past week, Brent rose in price by 8.3%, WTI – by 10.1%.

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