Weekly Oil Report: Calming the Market by Supply Boost

[vc_row][vc_column][vc_column_text]Crude sudden rising movements frightened all the covid-reviving economies and central banks. WTI and Brent could reach a 1-2 year highs during July after the OPEC+ dispute. However, the OPEC+ ministers ultimately agreed on boosting supply last week. The agreement caused several days of the red-colored market for crude. Finally, Brent closed at $72.49 and WTI stopped at $71.43 on Friday. OPEC countries and allies like Russia decided to compromise due to the United Arab Emirates (UAE) request. The country was displeased with the production allocations and asked for an increase. Saudi and Russia rejected the request at first. There were rumours about UAE exiting the OPEC program as well. However, the group’s ministers came to an agreement to increase several countries production levels by about 0.4 million bpd increase per month From August until December 2021. UAE's Energy Minister, Suhail bin Mohammed al-Mazroui, said they were happy with the new deal. The supply boost interrupted the soaring oil price. More supply means lower prices. Although the market was opened with a red candle on Monday, it has not fallen below $70 by the moment of writing this article. The supply increase and the new variants of coronavirus have brought negative sentiments to the market; therefore, we may see prices low as 70-68 during the week. The market knows that the demand is inevitably increasing in the long term due to the better global economic condition. The seasonal demand has already risen in the world, despite the virus re-outbreak in several places. Yet, we should not underestimate the virus variants in the short term.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_raw_js]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[/vc_raw_js][/vc_column][/vc_row]