Reuters reported: “Brent oil prices climbed above $120 a barrel despite a 648,000 bbl deal from OPEC+ and talk of higher prices for Asian oil buyers, raising the question of how to restructure The oil market after the Ukrainian crisis An Asian oil trader is quoted as saying that “a jump in prices is not expected.”
OPEC+ countries agreed to increase production by 648,000 bpd in July and by the same amount in August in an attempt to make up for the loss of Russian supplies in exchange for an initial plan to increase 432,000 bpd per month in the three months to September. But the increase has been split between member states, including Russia, and countries such as Angola and Nigeria, which are struggling to meet their production targets, raising concerns that the increase in supplies may actually fall short of official plans.
And countries in the northern hemisphere, like the US, usually start the driving season in July, leading to strong demand for gasoline, while China, the world’s biggest oil importer, reopens cities like Shanghai after long lockdowns imposed to curb outbreaks of Covid-19.
Source: El Iktisad
