Oil prices are falling today on mixed signals after a strong growth at the end of last week.Oil prices were supported by optimism about the execution of the transaction OPEC+. Iraq and Kazakhstan on Thursday presented the monitoring Committee of the OPEC+ compensation plans outstanding commitments to reduce oil production, other countries were given until June 22 to submit their plans.
“The level of execution of the transaction already was higher than the expectations of market participants, and probably can achieve a better level”, – said a senior analyst on the oil market Rystad Energy Paola Rodriguez of Masiu, quoted by MarketWatch.
In addition, oil prices were supported by news of the talks between EU leaders on the establishment of a Fund for economic recovery 750 billion Euro ($840 billion) and the decline of tensions between the US and China.
“The recovery Fund of the EU 750 billion euros will support the economic recovery in Europe and will promote growth of demand for oil this summer” – the analyst Oanda Edward Moya.
In addition, Bloomberg reported that Beijing plans to increase purchases of American agricultural products to complete the first phase of a trade agreement with the United States.
At the same time, the rise in oil prices is restrained by fear of the growth of new cases of infection with coronavirus in China and several U.S. States. Over the past knocks in China identified 25 new cases of infection of the coronavirus, including 18 patients in the active form and the seven asymptomatic carriers, said Goskomstat of the country on its official website.
Authorities of Arizona, Florida, California and Nevada on Friday reported another record increase in new cases of infection with coronavirus, says CNBC.“Traffic in Beijing has declined, as the authorities are struggling with a new outbreak. In the U.S., Apple (NASDAQ:AAPL) was forced to close earlier opened stores amid rising cases of the disease in some States,” – noted analysts at ANZ, which quoted S&P Global Platts.
Meanwhile, the number of active oil and gas rigs in the U.S. last week fell by 13 units compared with the previous week to 266 units. A year earlier in the country, there were 967 units. The number of oil rigs decreased by 10 and made 189 on 600 less than a year earlier.
The cost of the August futures for Brent crude on the London ICE Futures exchange to 8:38 GMT on Monday is $of 41.05 per barrel, which is $0.14 (0.33 per cent) below the price at the close of the previous session. At the end of trading on Friday, the contract rose $0.68 to (1.6 percent).
Futures for WTI crude oil for July in electronic trading on the new York Mercantile exchange (NYMEX) dropped in price by $0.27 or (0,68%) to $of 39.48 per barrel. On Friday, the cost of these contracts increased by $0,91 (2.3 percent). The price of the nearest futures contract of WTI at the closing of the previous auction was the highest since March 6, according to data from Dow Jones Market Data.