According to the Saudi energy minister, OPEC+ dealt with challenges. It trimmed production, state news agency SPA stated on Monday, noting Abdulaziz bin Salman’s comments in a Bloomberg interview.
Brent crude rose by $1.32, or 1.4%. It was $97.80 a barrel by 1110 GMT. U.S. WTI crude climbed $1.65, or 1.8%, to $92.01.
According to Tamas Varga of oil broker PVM, whether cutting OPEC or OPEC+ production after September is justified is questionable. The oil market has finally discovered a bottom, notwithstanding the recent weakness caused by inflation.
Oil skyrocketed in 2022. It hit a record point of $147 in March, as Russia’s invasion of Ukraine worsened supply problems. Worries regarding rising inflation, weaker demand, and a global economic recession have pressured the prices.
Brent Is Falling
Also at the center is the chance of a nuclear deal between Iran and world powers that would permit Iran to increase oil exports. On Monday, a senior U.S. official informed Reuters that Iran had settled some of its main demands on resurrecting a deal.
Brent futures have dropped significantly from record highs. However, the market price and structure differentials in the physical oil market are still due to supply tightness.
On Monday, the Saudi minister spoke the paper, and physical oil markets had become “disconnected.”
The latest weekly reports of U.S. inventories indicate a drop of 1.5M barrels in crude stocks, accentuating tight supply. The first of this week’s two reports are off at 2030 GMT from the API.
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