World oil prices are declining on Monday ahead of the June OPEC+ meeting, according to trading data.
The price of August futures for Brent North sea oil mix fell by 0.53% to 37.64 dollars per barrel. July WTI crude futures fell 0.48% to $ 35.31 per barrel.
As the OPEC+ meeting approaches, speculation about future decisions has increased. The current deal provides for easing production cuts from July, meaning essentially putting 2 million barrels of oil on the market per day. But, as sources told Free News, the option of extending the current levels of production reduction is also being discussed.
OPEC+ agreed in April to reduce oil production by 9.7 million barrels per day in May-June, 7.7 million in the second half of the year, and 5.8 million further until the end of April 2022.
OPEC + countries are planning to discuss the market situation and the first results of the deal in a video conference on June 9-10. A meeting of the OPEC + Ministerial monitoring Committee is scheduled for June 8. At the same time, OPEC President and Algerian energy Minister Mohammed Arkab proposed to postpone the meeting from June 9-10 to June 4.
“The main focus is on OPEC+. We may be seeing a cautious pullback in (oil) prices,” an economist at Oversea-Chinese Banking Corp. Howie Lee told Reuters. At the same time, he noted that if the Alliance extends the current cuts, prices may reach $ 40 per barrel.
Tensions between the United States and China are also putting pressure on global markets. Also, traders are monitoring the unrest that has engulfed major US cities.