May 27, 2020

Texas oil rises 1.8% after OPEC containment position

The price of Texas intermediate oil (WTI) rose 1.8% on Thursday and closed at $ 53.55 a barrel, after investors observe a position of containment in production at OPEC, pending how trade negotiations between the US take place and China

At the end of live operations on the New York Mercantile Exchange (Nymex), WTI futures contracts for November delivery totaled $ 0.96 compared to the previous session on Wednesday.

US oil prices were on the rise influenced by the fact that the offer of the Organization of Petroleum Exporting Countries (OPEC) fell by 4.3% in September following the attacks on oil facilities in Saudi Arabia. The pumping level of Venezuela and Iran was also reduced last month.

But analysts point out above all that from OPEC the message has been released that it will be at an upcoming meeting in December when the Organization of Petroleum Exporting Countries and its allies, including Russia, will make decisions for the sustainability of crude during 2020.

In parallel, Saudi Arabia informed OPEC that its monthly oil production fell by 660,000 bpd in September after the attacks on its energy facilities.

The price increase was halted, however, by a report on the increase in stocks in the United States, currently the world's largest oil producer.

US crude stocks increased by 2.9 million barrels in the week to October 4, the Energy Information Administration (EIA) said Wednesday, more than double analyst expectations.

Uncertainty about the resumption of trade talks between the United States and China on Thursday had previously weighed on the market.

In this context, gasoline futures contracts expiring in November rose almost four cents to $ 1.62 a gallon, and natural gas contracts expiring the same month subtracted almost two cents, up to $ 2.21 per thousand feet. cubic

. (tagsToTranslate) oil (t) Texas (t) position (t) containment (t) OPEC

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