Yesterday, an OPEC+ meeting was held. However, we still don’t know about the decisions taken. That is why oil quotes show negative dynamics before the ministerial meeting on Friday.
At 8:10, Moscow time, February futures for the European Brent crude oil (traded on the British ICE Futures) fell to $ 63.16 per barrel. This is 0.23 US dollars (or 0.36%) below the value at the close of the previous trading. We recall that on Thursday, the asset increased $ 0.39 or 0.62% and closed at $ 63.39 per barrel of “black gold”.
At the exact same time, WTI crude oil (or rather, its January futures) decreased by 0.27% or 0.16 US dollars. At 8:10 a.m., the asset was trading for $ 58.27 per barrel. It is noteworthy that the opening price of yesterday’s session coincided with the closing price and amounted to 58.43 US dollars per barrel.
The Joint Ministerial Monitoring Committee (JMMC) has recommended further reducing of the volume of energy produced (or rather, by 1.7 million b / d). It is not yet known how the additional burden will be distributed between the cartel members. At the moment, OPEC+ countries adhere to an agreement that involves a reduction in production by 1.2 million b / d. The deal was made at the end of last year; its validity expires in April 2020.
Saudi Arabia is more meticulous in honoring the agreement than the rest states. Official Riyadh said they would continue to exceed the reduction plan (by about 400 b/d). Saudi Arabia calls on Iraq and Nigeria to get serious and fulfill their obligations.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group