Tokyo: oil prices OPEC+ fell more than $1 a barrel on Monday after a group of producers agreed to overcome internal divisions and boost production, raising some concerns about a crude surplus COVID-19 The infection is increasing continuously in many countries.
crude oil It was at $1.08, or 1.5%, at $72.51 a barrel by 0220 GMT after falling nearly 3% last week. US oil was down 1.01 cents, or 1.4%, at $70.80 a barrel, having fallen nearly 4% last week.
OPEC+ ministers agreed on Sunday to increase oil supplies from August in a bid to cool prices that climbed to the highest level in nearly 2-1/2 years earlier this month as the global economy grew amid the COVID-19 pandemic. recovers from.
The group, which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, agreed on new production shares from May 2022.
“Oil prices may continue to rise in the coming weeks,” Goldman Sachs said after the deal.
However, the US investment bank said it remained bullish on oil’s outlook and that the agreement was in line with its view that producers should be “tightened at all times while guiding to higher future potential and discouraging competitive investments.” The focus should be on maintaining the physical market.”
It said the OPEC+ deal represents a $2 “upside” to its summer forecast for Brent to reach $80 a barrel and on its outlook for the international benchmark to average $75 a barrel next year. 5 is the reverse.
To address internal divisions, OPEC+ agreed new production quotas from May 2022 for several members, including the United Arab Emirates, Saudi Arabia, Russia, Kuwait and Iraq.
“This agreement should provide comfort to market participants that the group is not headed for a messy breakup and will not open production floodgates anytime soon,” RBC Capital Markets said in a note.
The group cut production by a record 10 million barrels per day (bpd) last year as the pandemic developed, plunging US oil prices into negative territory at one point.
It has gradually brought back some of the supply, reducing it by about 5.8 million bpd.
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