Oil prices narrowly managed to conclude in the green on Friday after two days of losses linked to uncertainties around OPEC + negotiations.
A barrel of Brent North Sea for September delivery rose 0.16% or 12 cents from the previous day’s close in London, at $ 73.59.
In New York, a barrel of WTI for August closed slightly higher 0.22% or 16 cents to 71.81 dollars. ” We are swimming in uncertainty between the negotiations at theOPEC+ that do not appear to be over and the threat of the Delta variant of the coronavirus“, Explained Jack Scoville of Price Futures Group.
During the session, brokers seemed to adjust their positions after the losses of the previous days, with the price of Brent and WTI picking up some strength.
« It is typical, after several declines, to see an attempted rebound“, Noted the analyst. But over the week, a barrel of Brent and WTI dropped 2.86% and 3.96% respectively.
« The big question for investors is whether the discussions between theSaudi Arabia and the United Arab Emirates will lead to more oil immediately or not“, Explained Jack Scoville. ” Added to this are the contaminations that propagate through the Delta variant, which is certainly negative for the market. And the demand for oil.
Uncertainty still hangs over the level of supply from the Organization of the Petroleum Exporting Countries (OPEC) and their allies via the OPEC + agreement, starting next month: despite some ups and downs on Thursday, the negotiations did not officially completed and no summit capable of confirming the continuation of the OPEC + alliance policy is planned. ” The latest news suggests that the talks are heading in the right direction for the unity of theOPEC and in the wrong direction for the prices“, Warns Ipek Ozkardeskaya, analyst at Swissquote Bank.
An agreement could indeed ” pave the way for an increase in the daily production of members of theOPEC+“, Adds Ricardo Evangelista, from Activtrades.