The price of Brent oil rose to more than $ 68 per barrel this week, reaching its highest level from the announcement of reciprocal tariffs by US President Trump in early April, says CommerzBank raw material analyst Carsten Fritsch.
Markets observe a possible supply increase in June by OPEC+
“The price has been recovered around 10 $ since the minimum of 4 years recorded shortly after. The hopes of a possible approach in the tariff conflict between the US and China and the new US sanctions against the Iranian oil sector and Iranian oil buyers have recently provided a tail wind. The significant increase in the supply of oil by OPEC+ in May seems to have been digested for now.”
“This is because simultaneous production cuts to compensate for anterior overproduction can result in the fact that oil production in the eight OPEC+ countries increases less drastically than what is indicated on paper. According to a Reuters report, which is based on informed sources, these eight OPEC+ countries are considering a significant additional increase in production for June. A decision will be taken in this regard.
“If this materializes, a negative prices reaction could be expected. Petroleum prices could already be affected by this perspective in the next week. OPEC production surveys in April, which will be published at the end of next week, will probably show a small increase in production, since the first slight increase in production entered into force this month. However, this is only likely to have an impact on the market. They have increased more than agreed. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
