Oil prices remain unchanged: the market awaits OPEC’s decision
27 May 12:13
On Tuesday, world oil prices remained virtually unchanged, "Komersant Ukrainian" reports citing Reuters. Investors are currently on the sidelines in anticipation that OPEC may decide to increase oil production at a scheduled meeting later this week.
According to OilPrice.com, as of 12:02 Kyiv time, futures for Brent crude oil rose by 4 cents, or 0.06%, to $64.78 per barrel. U.S. WTI crude rose 2 cents, or 0.03%, to $61.55 per barrel.
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The situation in OPEC
According to preliminary data from Reuters sources, during the OPEC meeting scheduled for May 28, an increase in the production quota in July – by 411 thousand barrels per day – may be agreed upon.
Nevertheless, according to Russian Deputy Prime Minister Alexander Novak, the issue of increasing production has not yet been discussed. At the same time, three OPEC sources told Reuters that the eight alliance countries that had previously committed to additional voluntary production cuts are now scheduled to hold a separate meeting on May 31, a day earlier than planned.
Earlier, OPEC member countries had already agreed to accelerate the pace of production growth in June, which was the second consecutive month of supply growth.
Other factors
Meanwhile, US President Donald Trump’s decision to extend trade talks with the European Union until July 9 eased fears of possible tariffs that could negatively affect fuel demand.
Another important event was that Iran announced the official selling price of its light crude oil for Asian buyers for June at $1.80 per barrel, above the average of the Oman/Dubai benchmarks. For comparison, in May, the premium was $1.65, according to the state-owned National Iranian Oil Company (NIOC).
Speaking on Monday, Iranian President Massoud Peseshkian said that Tehran “will be able to survive” even if negotiations with the United States on a nuclear deal fail.
Analysts point out that if no agreement is reached, the current sanctions against Iran will remain in place, which will limit the supply of Iranian oil to the world market. This, in turn, may support oil prices, given the continuing supply shortage.
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