The growth of quotations was influenced by the agreements reached between OPEC+ members.
The price of a barrel of Brent on the London stock exchange exceeded the $43 mark for the first time since March 6. It was $43.25, up 3% from Friday.
The cost of the Texas WTI also increased. Also, for the first time since March 6, quotes exceeded the $40 per barrel mark.
According to Bloomberg, the increase in oil prices was facilitated by the agreement of OPEC + participants to maintain the total production quota of 9.7 million barrels per day until the end of June and reduce it by 100 thousand barrels per day in July. Countries that failed to meet the terms of the deal by 100% have pledged to compensate for non-compliance with quotas over the next three months — July, August, and September.
The Agency points out that immediately after the agreement was reached, Saudi Arabia decided to increase the price of its oil seriously. It is assumed that the income from July exports to other Asian countries will compensate for all the losses of Riyadh from the March failure of the OPEC + deal, which led to a sharp decline in quotations.
The increase in oil prices was also facilitated by the lifting of restrictions in many countries related to the spread of coronavirus infection. At the same time, however, as Bloomberg points out, there are specific fears that the second wave of diseases, as well as trade contradictions between Beijing and Washington, or the return of shale oil producers to the market will negatively affect the market.
On the evening of June 6, Russian Energy Minister Alexander Novak allowed the early completion of the OPEC + deal, which in its current form is calculated until 2022. He explained this by the fact that the world oil market is very unpredictable and volatile, so in the current conditions, it is premature to talk about what may happen in two years.