Photographer: Simon Dawson / Bloomberg
Photographer: Simon Dawson / Bloomberg
Oil rents above $ 42 a barrel in New York ahead of an OPEC + rally this week to assess its supply as countries struggle to contain the virus that has plagued economies and global demand for fuel.
The Joint Committee for the Supervision of the Council of Ministers – the panel reviewing the OPEC + deal – is ready for a scheduled meeting on Wednesday, with the group starting this month to return some raw supply to the market after deep cuts. Meanwhile, the US seized four tankers transporting Iranian gasoline for Venezuela bound in an unusual move that has the potential to destabilize global oil transportation if Iran takes revenge.
Oil is slowly pushing higher after rising near $ 40 a barrel since early June following a rapid rebound from a below-zero decline. However, the market is still struggling against wind gusts, including emerging virus infections and decay Tensions from US-China, which could dampen a rising demand, have escaped.
“The OPEC + JMMC meeting will look closely at how it tackles the ongoing overproduction by Nigeria and Iraq, although it is not expected to have a major impact on market sentiment,” said Vandana founder Vandana Hari. Insights in Singapore. “For now, there is not much supportive raw stock other than a weakening dollar and some bargain hunting.”
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OPEC + plans to returning about 1.5 million barrels per day this month after trimming roughly 10% of global supply following an accident in demand due to the outbreak. Oil exports from alliance member Oman fell 14% from a month earlier in July, according to a statement from the Ministry of Oil and Gas. Iraq has made them, too strongest commitment to implement even deeper output cuts.
Meanwhile, the tankers seized by the US were transporting about 1.12 million tonnes of petroleum, which is now confiscated with the help of ‘foreign partners’, the Department of Justice said in a statement Friday. The prospect of retaliation by Iran has the potential to disrupt oil markets if Iran interferes with international oil tankers Strait of Hormuz, the most critical choke point in the world for oil transportation.
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