“We will soon start working on a new agreement beyond 2022,” he said.
In this context, oil prices rebounded from session lows to trade almost stable this Monday. Brent Crude Futures for October they closed in u$s96.48 per barrel, down 24 cents or nearly 0.3%. Earlier in the session, the benchmark lost as much as 4.5%, snapping a three-day winning streak. For its part, WTI oil futures from the United States for delivery in September, which expired on Monday, down 54 cents, or 0.6%a u$s90.23. The October contract was down 4 cents, or 0.1%, at $90.41 a barrel.
The Organization of the Petroleum Exporting Countries and its Russia-led allies, a group known as OPEC+, have agreed to increase production by 648,000 bpd each in July and August, while completely scrapping cuts of nearly 10 million bpd implemented in May. 2020 to offset the collapse in demand due to the COVID-19 pandemic.
The group agreed this month to increase production quotas by another 100,000 bpd in September, when facing pressure from major consumers, including the United States, who want to cool prices.
The markets estimate that only Saudi Arabia and the United Arab Emirates have capacity slack and the possibility of significantly increasing production.
However, Prince Abdulaziz pointed out that liquidity shortages and extreme volatility divert attention from the problem of capacity slack.
“Without sufficient liquidity, markets cannot reflect the realities of physical fundamentals in a meaningful way and can give a false sense of security at a time when available capacity is severely limited and the risk of severe disruption remains high.”said.
Source: Ambito
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