In the last days the activity in the market of oil has fallen markedly, although intraday volatility remains quite high. Brent desperately eager to highs above $50 while looking for new sources of inspiration. In addition to the two weekly reports on the hydrocarbons reserves in the United States this week, the attention of the commodity segment will attract the OPEC summit, which will take place on Thursday.
Over the past three months, the quotes of “black gold” recovered from multi-year lows and have reached the milestone of $50/bbl. Therefore, the need for any coordinated measures and steps on the part of cartel members disappeared by itself. Oil becomes more expensive, despite the fact that the ambitions of the major players not only not diminished, but continue to grow. For example, on the eve of Iraq, which is the second largest oil producer in OPEC, announced a plan to increase oil supplies by an additional 5 million barrels. In this case, the average daily volume of exports will expand to 3.47 million barrels./day. And in the third quarter of Saudi Arabia, Kuwait, Iran and the UAE intend to increase our supply volumes.
Ahead of the summit of the cartel this behavior of its participants confirms the intention to continue the struggle for their market share. Especially now that the cost of energy has now reached a much more attractive levels. Such activity of exporters could trigger a decline in oil prices in the medium term. In the meantime, Brent held afloat due to supply disruptions in several countries, as well as the reduction in production and reserves of hydrocarbons in the United States.
By the way, after a while on the horizon can appear another factor supporting oil. This is a potential strike in Norway, where major companies and sector trade Union, to discuss wages for workers on floating platforms, and the dialogue is not quite as smooth. Negotiations with mainland working rigs expected to take place on 20 and 21 June.