Oil fell despite OPEC+’s policy of cuts

Oil fell despite OPEC+’s policy of cuts

The market’s concern about the rise in US Treasury bond rates weighed more on today’s trading.

The prices of Petroleum fell this Wednesday despite reaching a four-week high at the opening due to 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 North Sea oil for delivery in July fell 0.73% to $83.60 a barrel, after hitting its highest since May 1 at more than $85.

The barrel of West Texas Intermediate (WTI) of the United States for the same month lost 0.75% to 79.23 dollars, in a market concerned about the rise in rates of US Treasury bonds.

The cuts projected by OPEC+

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

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