OPEC+ is expected to maintain supply cuts at the next meeting in early June.
Global crude oil prices stabilized on Tuesday as prospects for OPEC+ maintain supply cuts at its June 2 meeting and hopes of strong U.S. fuel demand offset concerns about the path of interest rates.
He Petroleum rose more than 1% on Monday, in a day of moderate trading due to the festivities celebrated in United Kingdom and USA, driven by hopes of strong fuel demand due to the start of the summer travel and vacation season in the United States.
At mid-morning, the contract for July of the world benchmark Brent It rose 13 cents, or 0.2%, to $83.23 a barrel. He West Texas Intermediate in the United States (WTI) was trading at $78.91, up $1.19 or 1.5% from Friday’s close, after trading without settlement during Memorial Day in the United States.
“Oil has rallied lately, perhaps driven by expectations of strong fuel demand due to the start of the summer driving and vacation season,” he said. Charalampos Pissourosanalyst at the XM brokerage.
Fears that rates will stay elevated for longer contributed to crude oil’s weekly decline last week. Higher rates increase the cost of borrowing, which can dampen economic activity and oil demand.
“Despite the undeniable optimism of the last two days, concerns about rates are very likely to slow attempts at a significant rise in oil prices in the immediate future,” he said. Tamas Vargafrom the PVM brokerage.
A virtual meeting of the producers of the OPEC+, where operators and analysts expect voluntary production cuts of 2.2 million barrels per day to be maintained.
“It is reasonable to assume that there will be no changes in production levels,” Varga commented on the OPEC+ meeting.
Source: Ambito
