On Monday, oil increases due to the OPEC intentions to extend production cuts in the second half of this year.
The market has got additional support because the concerns about the increasing tensions between the US and Iran are growing.
On the London Stock Exchange, July futures for Brent crude have risen to $ 73.17 per barrel. This is almost one dollar more than at the previous trade. On Friday, the contracts fell by more than 40 cents.
WTI contracts at NYMEX have grown by 80 cents to $ 63.56 per barrel. At the last session, the futures also showed a slight increase.
OPEC is awaiting
According to the results of the meeting of the OPEC monitoring committee, which was held last weekend, the cartel will wait until the end of June. It should be noted that then there will be a meeting of all members and non-members of the organization, during which the question of the extension of the agreement to reduce production will be discussed.
The report, released on the results of the meeting, refers to the recommendations to continue monitoring and analyzing the situation. Special attention should be paid to the state of world oil reserves in the next few weeks. They will be one of the factors influencing the formation of the further decision to continue the program to reduce production in the second half of this year.
Oil price continues to grow because OPEC has a tight balance between supply and demand in an attempt to keep the price at the current level.
The uncertainty that existed before the meeting of the OPEC committee has remained. At the moment, it is completely unclear what will happen with the program to reduce production in June.
Conflict of America and Iran
Traders are concerned about the situation between the United States and Iran. On Sunday, the US President said that if Iran threatened and wanted the conflict, he would deal with it.
Relations between the two countries have deteriorated greatly. Some officials in Tehran made sharp remarks towards America. At the same time, the Ministry of Foreign Affairs of Iran expressed confidence that there would be no war between the countries.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade