Oil quotes during the trading session on Thursday resumed the upward trend and again turned out to be above $ 40 per barrel. Positive dynamics continues on Friday, at 9:00 Moscow time, the cost of a barrel is $ 40.26.
Support for prices was provided by reports that Saudi Arabia, the head of OPEC, and Russia on Thursday concluded a preliminary agreement to reduce oil production by the end of July. The official meeting of OPEC + oil ministers was postponed as Russia and Saudi Arabia are trying to achieve full compliance with the obligations of Nigeria, Iraq and Kazakhstan, which repeatedly violated the terms of the deal, and insist that those who could not fulfill the previous agreements compensate for non-compliance with quotas even more abbreviation. OPEC + countries reduced production in May by 8.6 million barrels, which corresponds to the implementation of the agreement to limit production by 89%. To achieve 100% completion, OPEC + needs to reduce production by another 1.1 million barrels per day to 9.7 million barrels per day - the level agreed for May and June.
In the event that the new terms of the deal to reduce production are agreed upon by all parties to the energy pact, the ratification of the updated agreement may take place at the OPEC + oil ministers meeting this weekend.
Even the data on changes in US oil reserves did not affect the mood of traders. Commercial oil reserves in the United States for the week of May 23 to 29 decreased by 2.077 million barrels, or 0.4%. US gasoline inventories rose 2.8 million barrels, or 1.1%, although analysts had forecast an increase of 1 million barrels. The Energy Information Administration also reported a drop in diesel demand to a 21-year low, further evidence that the pace of recovery in the US economy may be slower than expected.
Market participants believe that the “bullish” dynamics of oil may continue until Monday, when not only the results of the OPEC + meeting, but also the intentions of key oil producing countries regarding further support of the hydrocarbon market become known.
Brent BuyStop 40.40 TP 42.10 SL 39.90
Analytical reviews and comments on them reflect the subjective opinion of the authors and are not a recommendation for trading. Posted by Artem Deev Trader Analyst at AMarkets . The social network of traders is not responsible for possible losses in case of using review materials
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