Global oil prices were higher today, ahead of the OPEC+ meeting. Oil prices rose from $2 a barrel to $95.44 a barrel, extending Friday’s gains. Analysts are divided as to whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a grouping known as OPEC+, intend to maintain current production levels or raise prices, despite supply being tight. may decide to cut production. India, the world’s third-largest oil importer, benefits from a fall in prices as it reduces imported inflation.
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“There’s been a lot of talk about OPEC cut production, However, the oil producing group’s mass production is expected to remain stable today. Crude is also supported by concerns about Russian supplies as the G7 countries have agreed to impose a price cap on Russian oil, although major buyers India and China are unlikely to join. Crude oil prices weigh on demand concerns as China’s virus-related restrictions hamper economic activity. Crude may remain volatile ahead of OPEC’s decision, though demand concerns could keep prices under pressure,” said Ravindra Rao, CMT, EPAT, VP- Head of Commodity Research at Kotak Securities.
Oil prices have tumbled over the past three months, after touching a multi-year high in March, on concerns that interest rate hikes and the COVID-19 curbs in parts of China, the world’s top crude importer, Global economic growth and calm could slow oil demand. , Lockdown measures were eased in China’s southern tech hub Shenzhen on Monday, as new infections showed signs of stabilizing, although the city remained on high alert.
RussiaThe world’s second-largest oil producer and a major OPEC+ member does not support production cuts at this time, and the group will likely keep its output stable when they meet on Monday, the Wall Street Journal reported on Sunday, citing unidentified people. Reported done. familiar with the matter.
Commodity traders are also eyeing progress in talks to revive the West’s 2015 nuclear deal with Iran, though a deal could allow Tehran to increase exports and improve global supplies.
The White House on Friday refused to link the deal with the closure of the probe by the UN nuclear watchdog, a day after Iran reopened the issue, according to a Western diplomat.
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