Oil prices rise slightly on expectations of OPEC + meeting

Oil prices rise slightly on expectations of OPEC + meeting

Oil prices rise slightly on expectations of OPEC + meeting

Oil prices fluctuate slightly during trading, with investors awaiting an online meeting of the OPEC + Monitoring Ministerial Committee (JMMC).

The cost of November futures for Brent oil on the London stock exchange ICE Futures by 14:11 Moscow time amounted to $ 42.30 per barrel, which is $ 0.08 (0.19%) more than at the close of the previous session.

The price of WTI crude oil futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) by this time increased by $ 0.06 (0.15%) – up to $ 40.22 per barrel.

Analysts do not expect that OPEC + will decide on new production cuts following the meeting on Thursday, but the question of compliance with the terms of the deal may arise again amid signs of its violation by some participants, writes CNBC.

“I don't think we should expect any significant change in course from the OPEC + meeting this week as market fundamentals are assessed, especially given that the level of implementation of previously agreed cuts has been high,” notes senior portfolio manager at GuideStone Capital Management Tim Bray.

However, he believes Thursday's meeting could lay the groundwork for action in future meetings.

Earlier this week, OPEC and the International Energy Agency (IEA) downgraded their forecasts for oil demand this year.

“It remains to be seen whether the pivotal end of the year provides the respite needed by the oversaturated oil market,” said Stephen Brennock, oil analyst at PVM Oil Associates.

He added that “skepticism about rebalancing the oil market will continue as the world tries to overcome the Covid crisis.”

Yesterday, the US Department of Energy reported that the country's commercial oil reserves last week decreased by 4.39 million barrels – to 496.04 million barrels.

Gasoline inventories decreased by 381 thousand barrels and amounted to 231.52 million barrels. Commercial stocks of distillates increased by 3.46 million barrels to 179.31 million barrels.

Experts interviewed by Bloomberg expected an increase in oil inventories by 2.07 million barrels, a decrease in gasoline inventories by 600 thousand barrels and a drop in distillate inventories by 250 thousand barrels.

In addition, Hurricane Sally hit the coast of Alabama yesterday morning. As of Wednesday, about 27.5% of oil production capacity in the Gulf of Mexico has been shut down, according to estimates by the US Bureau of Safety and Environmental Affairs, cited by MarketWatch.

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