Oil rises, between OPEC+ meeting and geopolitical tensions in the Middle East

oil priceoil priceClosing price: Oil prices climbed on Tuesday, spurred by the upcoming OPEC+ meeting on production cuts and pushed by geopolitical tensions in the Middle East.

The price of a barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea, for delivery in July, won 1.34% has $84.22.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery the same month, increased by 2.71% has $79.83.

The next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the OPEC+ agreement will finally take place by videoconference on June 2, and not in Vienna (Austria) a day earlier as initially planned.

The market expects the meeting to decide to renew the current production cap, extending the cuts decided in November.

But there are many “of rumors“on the possibility that countries which have not been able to respect these production cuts will be asked to make additional ones to compensate, indicated Phil Flynn of Price Futures.

The market is also wondering whether production cuts will extend until 2025, added the analyst.

Added to these expectations, which pushed prices upward, were positive activity data in the United States which could boost fuel demand.

Thus the number of air travelers in American airports for Memorial Day weekend, the unofficial start of summer, reached a record of nearly 3 million, according to data from the security agency TSA.

In addition, consumer confidence in April was much better than expected, a good sign for energy demand ahead of summer travel.

Finally, the geopolitical situation which remains tense “is in favor of further progress” crude, noted Ipek Ozkardeskaya, analyst at Swissquote.

Although the Middle East conflict has not had a significant impact on the region’s oil supply, the truce between the warring parties is fast fading“, comments Tamas Varga, analyst at PVM Energy.

In addition, a ship was damaged by missile fire off the coast of Yemen, where Houthi rebels are increasing attacks on merchant shipping, the British maritime security company Ambrey said on Tuesday. There was no immediate claim of responsibility for the attack.

Since November, Yemeni rebels, supported by Iran, have attacked ships in the Red Sea and the Gulf of Aden, claiming to act in solidarity with the Palestinians in the Gaza Strip, where Israel is at war with Islamist movement Hamas for almost eight months.

(c) AFP

Comment Oil rises, between OPEC+ meeting and geopolitical tensions in the Middle East

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