Oil prices of benchmark grades continue to rise on the results of the meeting of the OPEC + Ministerial Monitoring Committee (JMMC). At the same time, according to the results of the week, Brent may add more than 8%, WTI – about 10%, Trading Economics notes.
The cost of November futures for Brent oil on the London ICE Futures exchange by 18:07 Moscow time on Friday is $ 43.39 per barrel, which is $ 0.09 (0.21%) higher than the price at the close of the previous session.
The price of WTI crude oil futures for October at the electronic trading of the New York Mercantile Exchange (NYMEX) by this time increased by $ 0.33 (0.81%) – to $ 41.30 per barrel
In the course of trading, both contracts temporarily declined amid growing concerns over relations between the US and China, writes MarketWatch. The US Department of Commerce said Friday that from September 20, “any provision of services for the distribution and maintenance of WeChat and TikTok mobile applications,” as well as updating them through online app stores in the United States, is prohibited.
Meanwhile, the timing of compensations for the unreduced OPEC + production volumes has been extended until the end of 2020, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman told reporters. According to him, there is confidence to believe that in September-December 2.4 million bbl / d of the under-cut OPEC + volumes will be compensated.
The OPEC + Ministerial Monitoring Committee (JMMC) has recommended that countries involved in the oil limitation deal should 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.
This week, OPEC and the International Energy Agency (IEA) downgraded their forecasts for oil demand this year.
However, investors' optimism was supported by data on a decrease in US inventories last week by 4.39 million barrels.
Traders also continue to monitor the situation in the Gulf of Mexico due to Hurricane Sally. About 30.7% of oil production in the Gulf of Mexico has been shutdown as of Thursday, up from 27.5% a day earlier, according to estimates by the US Bureau of Safety and Environmental Affairs, cited by MarketWatch.
Meanwhile, Goldman Sachs expects the global oil supply deficit to reach 3 million bpd by the fourth quarter of 2020. According to the investment bank's forecast, Brent will rise in price to $ 49 per barrel by the end of the year, and to $ 65 per barrel by the third quarter of 2021.