2023-07-21 19:21:45
US oil prices ended Friday at their highest closing level in three months, on a market increasingly convinced that Saudi Arabia and Russia will meet their commitments to reduce volumes.
The price of a barrel of Brent from the North Sea for delivery in September rose 1.79%, to close at 81.07 dollars.
Its American equivalent, the barrel of West Texas Intermediate (WTI) of the same maturity, which was the first day of use as a benchmark contract, gained 1.87%, to 77.07 dollars, a high since the end of April closing.
“The market has in mind the production cuts of OPEC +”, a group formed by the Organization of the Petroleum Exporting Countries (OPEC) and its allies of the OPEC + agreement, described Andy Lipow, of Lipow Oil Associates.
Saudi Arabia announced in June that it wanted to cut its production by one million barrels a day in July, before committing to do the same in August, while Russia promises to cut its exports by 500,000 barrels a day next month.
“Saudi Arabia seems to be sticking to its announcements, and shipping data shows a decline in Russian exports,” said Andy Lipow.
“Supply can be expected to contract even further in August, with a further decline in Russian exports,” Commerzbank analysts said in a note.
Still on the supply side, the United States has seen the number of wells in operation fall to their lowest level in 16 months, down nearly 15% since the start of the year.
The rise in prices nevertheless remains limited by the uncertainty that still hovers over global demand, of which the Chinese component is questioning, operators awaiting government stimulus measures.
On Friday, Chinese authorities announced initiatives to revive vehicle sales in the country, but so far moves to boost consumption and credit have been measured, far from the support expected by investors.
Traders will follow next week a series of PMI activity indicators that will provide information on the health of the global economy, said Edward Moya of Oanda.
In addition, several oil groups must publish their quarterly results, in particular ExxonMobil, Shell or Chevron, and should communicate, on this occasion, their forecasts for the months to come.
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