Oil prices jump as OPEC + reaches preliminary deal – .

Oil prices jump as OPEC + reaches preliminary deal – .

Russia and Saudi Arabia have reportedly reached a preliminary deal for OPEC + to gradually increase production by 2 million barrels per day between August and December, Reuters said, citing an anonymous OPEC + source.

It is this unofficial source from a JMMC meeting, which was still ongoing at 1:00 p.m. EDT.

An OPEC panel has proposed monthly increases in production of 0.4 million barrels per day.

Update on TwitterAmena Bakr, deputy bureau chief and OPEC chief correspondent for EnergyIntel, said the JMMC is currently addressing some countries’ dissatisfaction with their existing baselines.

Bakr also noted, alongside Reuters, that talks at JMMC were about a potential increase of 400,000 bpd per month from August to December, warning that there was no official announcement yet that the proposal had been adopted for the time being.

Reuters also said that the “management” of the oil supply could continue until the end of next year.

At the time of writing, sentiment was bullish, but Brent fell slightly from its price over $ 76 this morning, to $ 75.88 at 1:07 p.m. EDT. WTI is trading at $ 75.23.

Overall the market likes it. The global economy is recovering and US shale producers and OPEC have shown the right amount of restraint to ensure that the gradual increase proposal is met with bullish sentiments.

“OPEC seems to be holding some restraint, and for me the market is in a very good position,” said Bloomberg, quoting Rebecca Babin, senior energy trader at CIBC Private Wealth Management, US. “People are very comfortable and constructive with the profile over the next year. “

Speaking to Agence France Presse, PVM analyst Stephen Brennock described OPEC’s strategy as “so far on track”, saying the cartel “has succeeded in restoring oil balance without tightening the market too much ”.

By Tom Kool for Oil chauffage

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