ICE Brent reached its highest level since mid -May yesterday, with the contract of the current month quoting just below $ 66/BBL. Forest fires in Alberta, Canada, provided a boost to prices. This, at a time when the market is digesting the increase in Opec+ supply announced for July. There are still clear signs of tension in the oil market in the cash as we approach the summer of the northern hemisphere. Both the Brent and WTI time differentials have been strengthened recently, while trade is in a deep backwardation, they point out experts in raw materials of ING, Ewa Manthey and Warren Patterson.
Opec production will continue in upward trend
“The supply risks around Alberta’s forest fires seem to be decreasing, at least for now, due to the rains. The oil producer Canadian Natural Resources restarted production in one of its sites after stopping it last week due to the fires. However, this relief could be ephemeral in the midst of forecasts of a drier climate of a drier and warm climate towards the end of this week.”
“Preliminary production numbers of a Bloomberg survey show that Opec production increased by 200k B/D month to 27.54MB/D in May. This was less than the Opec part of just over 300k b/d of the total increase of 411k b/d in the supply of Opec+. Some OPEC members were already producing above their objectives, reducing the real increases in the market. In addition, some members, including Saudi Arabia, did not reach the production objectives.
“The inventory numbers of the previous night of the American Petroleum Institute show that US crude oil inventories of barrels and 761k barrels, respectively. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
