Oil prices rose today, Friday, supported by expectations that the decision of “OPEC” to increase production targets, slightly more than planned, will not significantly affect the scarce supply in the markets.
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Oil rises despite the “OPEC +” plan to increase production
Oil prices rose today, Friday, supported by expectations that… OPEC’s decision to increase target levels Of production, a little more than planned, will not significantly affect the tight supply in global markets, and increase demand as China eases the restrictions of “Covid-19”.
The “OPEC +” bloc, which includes the Organization of Petroleum Exporting Countries (OPEC) and independent oil producers, including Russia, decided to increase production by 648,000 barrels per day in July and August instead of 432,000 barrels per day, according to a previous agreement.
Brent crude rose $1.76, or 1.5 percent, to $119.37 a barrel by 13:38 GMT. US West Texas Intermediate crude rose $1.70, or 1.3 percent, to $118.57.
US crude is heading towards achieving its sixth weekly rise due to the scarcity of US supply, which sparked talk of imposing restrictions on the export of fuel or an unexpected tax on oil and gas producers.
Thursday’s weekly inventory report showed that US crude stocks fell by 5.1 million barrels, an increase more than expected, and gasoline stocks also decreased, confirming the supply shortage.
Demand has also increased. With the decline in daily cases of “Covid-19”, Shanghai, the financial center of China, and the capital, Beijing, eased restrictions to combat the Corona virus, The Chinese government has vowed to stimulate the economy.