Don961: The stability of oil prices in world markets
Thursday, July 04
Singapore / follow-up
Oil prices stabilized on Wednesday in global markets after OPEC and its Russian-led allies agreed on Tuesday to extend oil production cuts until March 2020 in a bid to boost crude prices as the global economy is weak and output rises.
American.
Prices also received support from data showing a larger-than-expected decline in US crude inventories. By 0613 GMT, London Brent crude for September delivery rose 12 cents, or 0.2 percent, to $ 62.52 a barrel.
The slowdown of the economy
US crude for August delivery rose 16 cents, or 0.3 percent, to $ 56.41 a barrel, and the crude fell more than 4 percent on Tuesday on concerns of a global economic slowdown.
The US Petroleum Institute said crude inventories in the United States fell by five million barrels last week, while expectations were down 3 million barrel.
Crude prices
OPEC and its allies, led by Russia, have agreed to extend oil production cuts until March 2020 in a bid to boost crude prices as the world economy weakens and US production rises.
The alliance, known as OPEC +, has been cutting oil supplies since 2017 to prevent falling prices as competition with the United States, which overtook Russia and Saudi Arabia to become the world’s largest crude producer,
Business Dispute
“Concerns about weak global demand as a result of the US-China trade dispute are a new challenge for the 14-member Organization of the Petroleum Exporting Countries,” said Saudi Energy Minister Khalid Al-Falih. The extension of the production deal is likely to anger US President Donald Trump Which demanded Saudi Arabia, the largest producer in OPEC, to pump more oil supplies and help reduce fuel prices if Riyadh wants US military support in its confrontation with Iran.
The extension of the OPEC + deal comes after Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend the deal and continue to cut production by 1.2 million barrels per day, equivalent to 1.2 percent of Global demand . link
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