News 14 june — 10:53

OPEC disagreements crashed oil prices


Oil today resumed its decline due to disagreements among members of the Organisation of Petroleum Exporting Countries (OPEC) on the issue of the gradual recovery of production volumes.

As of the present time on June 14, the price of August futures for Brent on the London Stock Exchange ICE Futures has today dropped by $0.19 (0.25%) to $76.55 per barrel.

The cost of WTI oil for July delivery in electronic trading on the New York Mercantile Exchange (NYMEX) fell by $0.01 (0.021%) on Thursday morning, to $66.63 a barrel.

As a result of the previous session, Brent added $0.86 (1.13%) and rose to $76.74, while WTI went up by $0.28 (0.42%) to $66.64 per barrel. The rise in prices was provided by data on the decline in commodity oil reserves in the US by 4.14 million barrels last week.

According to Ole Hansen, chief commodity strategist at Saxo Bank, oil remains in a relatively narrow range, and the situation is unlikely to change until the OPEC+ meeting next week.

OPEC states, Russia and other oil-producing countries are expected to discuss a revision of the agreements on oil production limitation by 1.8 million barrels per day, which since January 2017 supported the growth of the price of Brent by 65%. At the same time, most of the 14 OPEC countries currently cannot increase production, which increases tensions before the meeting.

Today, Russian President Vladimir Putin will hold talks with the Crown Prince of Saudi Arabia, Mohammed bin Salman Al-Saud. As analysts expect, the topic of oil will be given special attention.

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