Oil rises prior to the OPEC+ meeting and due to tensions in the Middle East Enseconds Dominican Republic

Oil rises prior to the OPEC+ meeting and due to tensions in the Middle East Enseconds Dominican Republic
Oil rises prior to the OPEC+ meeting and due to tensions in the Middle East Enseconds Dominican Republic

Oil prices rose this Tuesday driven by the upcoming OPEC+ meeting, in which production cuts are expected, and by geopolitical tensions in the Middle East.

The price of a barrel of Brent from the North Sea, for delivery in July, rose 1.34% to $84.22.

Its US equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, gained 2.71% to $79.83.

The next meeting of the Organization of the Petroleum Exporting Countries (OPEC), plus its allies in the OPEC+ agreement, will be on June 2 via videoconference.

The market expects that decisions will emerge from the meeting regarding the current production limit, such as the extension of the cuts that were agreed in November.

According to Price Futures’ Phil Flynn, there are many “rumors” that countries that have failed to respect these production limits may be asked to make additional cuts to compensate.

The market is also wondering whether production cuts will extend until 2025, the analyst added.

The still tense geopolitical situation in the Middle East “favors further progress” in the price of crude oil, explained Ipek Ozkardeskaya, an analyst at Swissquote.

 
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