The petrolium recover from the minimum of three weeks, on the basis of theCommercial agreement signed between the United States and the European Unionwhich closes the series of bilateral agreements signed by Trump with the major partners (Mexico, Canada, the United Kingdom, China, Japan and the EU). A breath of oxygen for the oil market, which is already serving the progressive Increase in the offer by OPEC+ and the slowdown of the demand induced by the slowing down of the world economy.
Oil above the minimums of 3 weeks
The price of oil, which had touched the minimums for three weeks last Friday, begins the week in recovery. The September contract on WTI American records an increase of $ 0.81% to 65.68 dollars per barrel, while the Brent On delivery in October, it records an increase of 0.72% to 68.13 dollars/barrel.
The US-EU agreement
To trigger the purchases has contributed precisely the commercial agreement Signed between the United States and the European Union, which avoids the increase in the duties at 30% which would have triggered on August 1 and includes an agreement for the purchase of energy from the USA.
As part of the agreement, in fact, the EU accepted to buy energy from the United States for a value of 750 billion dollars in three years, which also allows the EU to center the set target of removal from Russian gas by the end of 2027
Not to mention that the loosening of commercial tensions stimulates economic activity and world trade, fueling the demand for oil thanks to the increase in handling goods and transport.
It remains to be seen how the OPEC+ will move
Last week, the oil had also been penalized by rumors that spoke of a Increase in the offer by Venezuelaresulting from the attachment of US sanctions.
But in general the STRATEGY OF THE OPEC+ It provides that the oil offer is progressively increasing for the rest of the year. The next increase will start in August. The sign, in its extended form which also includes Russia and other foreign members, yes will bring together again on August 3rdto decide what to do starting from September.
OPEC+is expected by the end of September, the restarting of 2.2 million barrels are complete of volunteers previously implemented, which would mean increasing the production of 280 thousand barrels starting from September, except for the possibility of more aggressive cuts.
“The group may feel encouraged to proceed with another substantial increase in the offer for September since the prices are holding relatively well despite the increases in the offer already announced in recent months”
explains Eng.
