Oil has risen in 2018 as demand grows, OPEC + caution Business and Economic News

Brent’s global benchmark futures closed at $ 76.18, grossing out of West Texas in the United States at $ 74.05, the highest close since October 2018 for both.

Oil prices rose from their highest point in October 2018 on Friday, setting two benchmarks for the fifth week in a row as demand growth exceeds supply and OPEC + will be cautious to return more crude to the market from August.

Brent’s future global benchmark rose 62 cents, or 0.8 percent, to $ 76.18 a barrel, while gross West Texas Intermediate (WTI) crude was 75 cents, or 1.0 percent, at $ 74.05 .

They were the highest closures for the two benchmarks since October 2018 and both contracts rose more than 3 percent per week.

“Gross prices continued to improve demand forecasts and the market will continue to exceed expectations, as it is likely that OPEC + will only deliver at the July 1 ministerial meeting,” said Edward Moya, OANDA’s chief market analyst.

The Organization of the Petroleum Exporting Countries, Russia and allies are all eyes – with the name OPEC +, and will hold a meeting on July 1 to further alleviate further cuts in output.

“The producer group has ample room to increase supply without eliminating the decline in oil stocks, given the more rosy demand,” said PVM oil agent Stephen Brennock.

On the demand side, the main factors that OPEC + will have to take into account are the high growth in the US, Europe and China, the expansion of coronavirus vaccines and the reopening of the economy, according to analysts who say COVID-19 cases have risen. appearances elsewhere.

The removal of sanctions against Iran and the possibility of more oil on the market have been closed, a U.S. official said, with serious differences remaining between Tehran’s compliance with the 2015 nuclear deal.

The lack of a provisional agreement to monitor nuclear activities between the United Nations nuclear guard and Iran is a serious concern, Tehran was informed on Friday, U.S. Secretary of State Antony Blinken said on Friday.

Iran has not responded to the UN nuclear guard about extending the overnight follow-up agreement, the agency said Friday, warning Washington that after failing to extend it, it would undermine efforts to revive the 2015 Iran nuclear deal.

“If no agreement is reached on Iran by July 1, we expect OPEC + to return to monthly quota setting and announce modest August production growth at meetings next week,” analysts at ClearView Energy Partners LLC said in a report.

Meanwhile, the number of U.S. oil rigs, an early indicator of future production, fell to 372 this week, according to Baker Hughes Co. according to the energy services company, despite this small decline, the equipment gained 13 per cent – the 10th increase per month – and increased by 48 in the second quarter, the third consecutive increase.