At 8 a.m. Moscow time, Brent crude futures for September cost $ 66.3 per barrel on the stock exchange in London. This is 1.5 dollars more than the price at past trading. On Friday, quotes dropped by almost a dollar and reached a value of $ 64.7.
The American crude oil WTI is growing too. Its contracts for August have grown by $ 1.4 and now cost nearly $ 60. On Friday, the price fell by almost a dollar. Bidding closed at a price of 58.5 US dollars.
The market is supported because traders are sure that OPEC + will extend the agreement to cut production. In addition, prices are sustainable due to the news that the United States and China have declared a truce. They also intend to once again sit at the negotiating table. America gave up its plans to increase duties on the remaining volume of goods from China. The States have not yet specified the exact terms of freezing their intentions.
At the end of the G20 summit, the Russian president announced that it had been decided to extend the agreement to cut oil production for a period between six and nine months. The decision was taken together with Saudi Arabia. Alexander Novak, Minister of Energy of the Russian Federation, noted that it made sense to extend the agreement for 9 months. This position was supported by Mohammed Barkindo, Secretary General of OPEC. He stressed that it would be easier to assess the overall situation in the market if the agreement was in force as long as it could. It is about the situation not only in the current year but at the beginning of the next year too.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group