Oil prices began to rise on Friday after declining for the past days. The positive dynamics for black gold was due to the news from OPEC about the execution of the contract to reduce oil production in those countries that did not cope with their obligations. As it became known after the next meeting of the ministerial committee of the organization, the debtors are obliged to fully compensate for the shortage by the end of September this year. Market participants were encouraged by such news, which immediately affected the price of crude oil.
The meeting of the OPEC Monitoring Committee was held on August 19, but its results only began to positively influence the raw materials market at present, since up to that moment there were quite a few negative factors that could exert serious pressure. However, investors felt from OPEC confidence that the deal would be fully implemented to the extent stipulated by the contract. Recall that the overall level of additional reductions in raw materials production in countries that exceeded the standards in the period from May to July is 2.31 million barrels per day. This is how much they will have to limit their production until the end of September.
The crude oil market was also troubled on Thursday, amid statistics released by the United States Department of Labor. As it became known, there was a sharp and unexpected increase in the number of new applications for unemployment benefits last week which amounted to 1.106 million.
In addition, the new wave of coronavirus infection also has a significant impact on the mood of investors, who are closely monitoring the increase in the number of new infections in the world and particularly in the US. As of Friday morning, more than 22 million 678 thousand COVID cases have been recorded in the world as a whole. Over the last day, an increase of 267,000 new cases was recorded. The total number of deaths has already reached a total of 793, 698. The mortality rate is growing, and with it, the fears of market participants are increasing. Meanwhile, the number of people completely cured of the virus is also growing and on Friday it was around 14.5 million cases.
The price of futures contracts for Brent crude oil for delivery in October on the trading floor in London increased by 0.29% or $ 0.13, which moved it to the level of $ 45.03 per barrel. Note that Thursday's trading ended in the red zone with a drop of 1% or $ 0.47.
The price of WTI light crude oil futures contracts for October delivery on the electronic trading floor in New York also went up by 0.19% or $ 0.08, and the overall cost level was $42.90 per barrel. Thursday's trading ended unsuccessfully for the brand after losing 0.7% or $0.29 from its previous value.
In the meantime, WTI crude oil has not yet been able to overcome the strategic mark of $ 43 per barrel, however, it continues to consolidate near this level throughout the week.
According to most analysts, the upturn in the crude oil market will be rather limited in the near future, as there are several factors holding back active growth. These particularly include concerns of investors about the prospects for the growth of the global economy and its recovery from the consequences of the crisis associated with the COVID-19 pandemic. The prospects for the economy of the United States of America are becoming especially gloomy after the publication of the minutes of the meeting of the Fed. And beginning the next day, market participants are also starting to closely monitor the climate situation in the Gulf of Mexico. The season of tropical storms begins, which could lead to disruptions in the supply of crude oil. If this does not happen, then the prices on the market may go down again, since the initiative will be on the side of the "bears".
