Oil declines, the OPEC could postpone its meeting in July

oil prices have lost ground Monday, while a report on an important meeting intended to extend the production cuts by the major exporters has created uncertainty as to the agreement.

The future of WTI crude oil traded in New York have lost 49 cents, or 0.9%, to 52,02$ / barrel at 15: 30, while futures for Brent, the benchmark for oil prices outside the United States has lost 53 cents, or 0.9%, to $ 61,48$.

“We hope to reach a consensus to extend our agreement when we meet in two weeks in Vienna”, said to the press, the saudi minister of Energy, Khalid al-Falih, at the margins of the G20 ministerial meeting on energy and the environment of Japan, according to Reuters.

When asked about the date of the meeting, he replied: “Probably the first week of July. “

The remarks seemed to be a step backwards compared to the comments from the beginning of June, according to which the members of the agreement, reduction of the production were “about to hear”.

Falih said a week ago that Russia, who heads the non-member countries of the OPEC in the covenant, was the only party still undecided.

The reference to July has confirmed weeks of speculation pointing out that the dates of the meeting – June 25 for the OPEC and non-OPEC members-joining the next day – could be delayed at the request of Russia. OPEC has not yet changed officially on the calendar.

“The more OPEC will hold this meeting, the more there will be doubts that it will benefit from the support of its members and its allies to extend the reductions necessary to offset a portion of this abundant oil reserve was talking about Falih,” said the senior analyst of raw materials Investing.com, Barani Krishnan.

Oil prices have been under pressure due to signs of weakening global demand and u.s. production to record levels. The gross u.s. declined by almost 22% compared to the peaks reached in April, a barrel of Brent following closely with a fall of nearly 19%. According to CFTC data released on Friday, the positions net long speculative crude oil fell for the seventh consecutive week, reaching their lowest level since early march.

The International Energy Agency announced in its monthly report released on Friday that the outlook for growth of oil demand in 2019 are blurred due to the deterioration in the outlook of world trade. In the course of the weekend, the us Commerce secretary, Wilbur Ross, has minimized the chances of president Donald Trump and his chinese counterpart Xi Jinping reached an agreement at the G20 summit on June 28 and 29. He repeated that Trump was “perfectly happy” to stick to its pricing strategy, current.

In addition, Iran announced on Monday that they would exceed in 10 days the limit agreed at the international level on its stocks of enriched uranium, unless Europe takes steps to help mitigate the economic impact of the sanctions imposed by the United States.

Tehran had previously threatened to go back on the nuclear deal after the withdrawal of the government Trump the pact last year, and the imposition of economic sanctions.

The american secretary of State Mike Pompeo said on Sunday that the United States was ” considering a range of options “, including military, on Iran, which he accused of having attacked two oil tankers near the Persian gulf last week. Iran has denied the charges.

In other commodity prices, future gasoline decreased by 0.9% to 1,7165 per gallon to 15: 30, while heating oil lost 0.8% to 1,8152 per gallon.

Finally, the future of natural gas lost 0.8% to 2,367$ per BTU.

Like this post? Please share to your friends:
Leave a Reply