Oil prices rise by more than 3%, and Brent approaches $68

  • 23 August, 2021
  • 1:15 pm EEST

Oil price hike

After losses of more than 7% for Brent crude, and 9% for WTI, last week, oil prices rebounded in Monday’s session again, and rose more than 3%.

By 09:50 am GMT, the price of the futures contract for the benchmark Brent crude – October delivery – rose by 3.24%, to record the price of a barrel of $ 67.29.

The price of West Texas Intermediate crude future contracts – October delivery – rose by 3.19%, to reach its price of $ 64.12 a barrel.

During the past week, the price of Brent crude fell by 7.7%, and US crude fell by about 9.2%, as oil prices were negatively affected by the rise in the value of the US dollar after the Federal Reserve’s direction to reduce the pace of asset purchases.

OPEC+ meeting

The oil markets are awaiting the results of the meeting of the “OPEC +” alliance, which will be held on the first of September.

Citigroup data suggested that OPEC + will likely stop increasing its production during the coming period, driven by the decline in oil prices, following strong gains recorded by crude in the first half of this year.

“The move by OPEC + will depend on how much and how long prices recover, but the chances of a temporary suspension of oversupply look very strong,” said Vandana Hari, an analyst at Vanda Insights, an energy consultancy in Singapore.

Asia is set to send excess diesel supply to Europe and possibly to the United States, with a delta variable impacting demand, as industrial fuel prices in Singapore have fallen compared to those in Europe, spurring oil flows westward, in part due to the current state of recovery for each region. of the epidemic, according to Bloomberg.

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