Thursday , August 5 2021

Oil reduces its collapse in full countdown to the G20 and OPEC



The OPEC itself acknowledged in the & # 39; her monthly "sharp increase in supply" in the oil market report

The week begins with the ceasefire in the oil, which fell 8% on Friday. The Brent escapes from minimum & # 39; more than a year and sometimes recover US $ 60, in & # 39; full current account for the G20 summits and OPEC.

The health registered increases in the price of oil during the first ten months of the year led to investor susceptibility in the crude oil market. The turmoil is taking place, and raise levels & # 39; their volatility to unprecedented levels from 2016, the year began with oil cooled in & # 39; US $ 27.

The last few weeks have collisions at nearly normal oil price. In just ten days, crude oil recorded three days b & # 39; losses near or over 6%.

Friday Friday, the wagon & # 39; birds ragga & # 39; even 8% in the case of type barrel West Texas, a reference in the United States. Its price fell to US $ 50.4. In the corner of & # 39; Brent, the reverse & # 39; 6% attracted its price below US $ 60, US $ 58.88, the lowest level in & # 39; more than one year and less than 30%.

The week begins with the ceasefire by investors in the oil market. The komeback gaining strength, and sometimes exceed 2%. This reaction has increased the price of the barrel & # 39; Brent to high levels of & # 39; Intraday & # 39; over US $ 60. The price of West Texas barrel type, a & # 39; reference in the United States, to recover US $ 51.

The overall improvement in markets mitigates hidden warnings about the degree of & # 39; global warming, a situation which is & # 39; a direct impact on demand for crude oil. The European agreement on Brexit and improvement perspectives on Italy aside at least momentarily the worst scenarios envisaged in Europe.

The G20 summit as forecast & # 39; OPEC
On a more global level, the outlook may undergo significant adjustments this weekend, on the occasion of the G20 summit. All lights in & # 39; this appointment will be at the meeting to hold the top leaders & # 39; the United States and China. At their meeting, Donald Trump and Xi Jinping may sign peace in their tariff war. This agreement helps to cool fears & # 39; economic downturn, and lower demand for oil.

But in & # 39; the last days, the magnitude of the collapse of oil increased expectations generated by another meeting will take place in the framework of the G20 summit in Argentina. The program includes the assistance of top executives of the two biggest oil exporters, Saudi Arabia and Russia, who will share the stage with & # 39; Donald Trump, the greatest thing in the end months of OPEP with his warnings against a fall in production. .

Saudi Prince Mohammed bin Salman and Russian President Vladimir Putin tried, b & # 39; uneven success, to control the oil market in & # 39; the last two years. The pact OPEC and other producing countries like Russia to try to recover the balance in the oil market will be reviewed in a few weeks and a half.

The presence in Argentina both chief executive of Saudi Arabia, de facto leader of OPEC, and Russia, leaders of the countries associated with the covenant not members of OPEC, can provide relevant news concerning the looming production cuts.

At the summit of & # 39; OPEC on 6 & # 39; December, OPEC will consider approving a reduction of quotas & # 39; its pumping will reduce forecasts & # 39; oversupply and, as an extension, reduce the recent collapse in oil prices.

The leaks before the summit & # 39; the OPEC indicate debate focusing on reducing non-production raffuta b & # 39; about 1.5 million barrels per day. The OPEC itself acknowledged in the report & # 39; her monthly "surge of supply" in the oil market, and the International Energy Agency represents approximately 2 million extra oil for the first half of 2019.

The effectiveness of the cut OPEC also depends on complete flexibility in the sanctions imposed by the United States. towards Iran. The blockade came into force at the beginning of the month, but the United States decided to grant exemptions to the major buyers of Iranian raw materials, and therefore the impact of & # 39; these sanctions was virtually nil updated, as opposed to predicted at the beginning of & # 39; October, when the Brent barrel welcomed & # 39; US $ 86.

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