Oil Falls as Expectations Rise for OPEC to Ease Production Cuts
Oil prices dipped on Monday as traders considered factors like a surge in COVID-19 infections global..
Oil prices dipped on Monday as traders considered factors like a surge in COVID-19 infections globally and a much-anticipated technical meeting of representatives of the Organization of the Petroleum Exporting Countries (OPEC), at which a push is expected to lift production curbs, according to sources cited by The Wall Street Journal.
Brent crude fell 22 cents, or 0.5 percent, to $43.02 a barrel by 13:40 GMT, though prices have been hovering around $42 for a couple of weeks. U.S. crude was down 21 cents, or 0.5 percent, at $40.34.
The World Health Organization (WHO) reported a record daily increase in global COVID-19 cases on Sunday, with the total up by more than 230,000. Infections surged in the United States over the weekend, with Florida reporting a rise of more than 15,000 new cases in 24 hours, a record for any state. Still, daily deaths due to the deadly disease in the United States are down from their April 21 peak of 2,748 to 380 on July 12, according to official figures compiled by Worldometers.
Traders have been eyeing OPECs forthcoming Joint Ministerial Monitoring Committee (JMMC) meeting on Tuesday and Wednesday, at which OPEC and its allies including Russia, a group known as OPEC+, will recommend levels for future supply cuts. Earlier, in response to plummeting demand due to the pandemic, OPEC+ cut output by a record 9.7 million barrels per day for May, June, and July.
A well head and a drilling rig in the Yarakta Oil Field, owned by Irkutsk Oil Company in Irkutsk Region, Russia, on March 11, 2019. (Vasily Fedosenko/Reuters)OPEC delegates cited by The Wall Street Journal said that a group of oil producers led by Saudi Arabia would push for an increase in crude production starting in August. The Saudi-driven proposal was reported to amount to an increase of OPEC+ daily oil production by 2 million barrels, up to 7.7 million barrels per day.
OPEC Secretary General Mohammad Barkindo said on Monday that the easing of pandemic-driven lockdowns has led to a gradual rise in oil demand, bringing the oil market closer to balance.
The Paris-based International Energy Agency (IEA) bumped up its 2020 oil demand forecast on Friday but warnRead More – Source
