The world’s largest producers would announce that they will maintain voluntary production cuts of about 2.2 million bpd.
The prices of Petroleum reached a four-week maximum this Wednesday due to the expectations that the producers gathered at the OPEC+the largest in the world, will extend pumping cuts at the end of the week and fuel consumption will begin to increase as the peak summer demand season begins.
The Brent crude oil futures for delivery in July rose 62 cents, or 0.7%, to $84.84 a barrel, at 10:50 GMT, after hitting their highest since May 1 at $85.02.
The West Texas Intermediate (WTI) futures In the United States for July they also gained 62 cents, or 0.8%, to $80.45, after reaching their highest level since the first day of the month, at $80.62. Both benchmarks advanced more than 1% the day before.
Operators and analysts expect that OPEC+, a group formed by the Organization of Petroleum Exporting Countries (OPEC) and Russiamaintain voluntary production cuts of about 2.2 million barrels per day (bpd).
“Right now we don’t see any appetite to add more barrels to the market and trigger another downward price move,” said Helima Croft, an analyst at RBC Capital. “The current price level is already causing several producers to go deeper into debt and delay the timelines of some high-profile projects,” she added.
The start of the summer season in the northern hemisphere, when demand for road and aviation fuels peaks, also supported market values. Petroleum.
“Initial data suggests that there was a relatively high number of holiday trips in USA during the festival of Memorial Day, the traditional start of the travel season. Air travel was also strong,” Daniel Hynes, commodity strategist at ANZ.
Source: Ambito
