Oil prices remained largely unchanged as markets awaited the OPEC+ meeting.

The price of the Brent crude July contract rose by 11 cents to reach $82.23 per barrel

May 28, 2024 - 10:50
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Oil prices remained largely unchanged as markets awaited the OPEC+ meeting.

Oil prices remained steady in early Asian trading on Monday while waiting for an OPEC+ meeting on June 2, where producers will likely talk about continuing voluntary output cuts for the remainder of the year.OPEC announced on Friday that the OPEC+ meeting, which was scheduled for June 1, has been rescheduled for June 2 and will be conducted virtually.

The price of the Brent crude July contract rose by 11 cents to reach $82.23 per barrel. The August contract LCOc2, which was more active, increased by 13 cents to reach $81.97.
U.S. West Texas Intermediate (WTI) crude futures increased by 13 cents to reach $77.85.

Three sources from OPEC+ countries suggest that there will be a discussion on extending the voluntary output cuts of 2.2 million barrels per day into the second half of the year by the producers. Teamed up with an additional 3.66 million bpd of production cuts lasting until the year's end, the cuts in output amount to almost 6% of worldwide oil demand.

OPEC predicts strong oil demand growth of 2.25 million bpd for another year, while the International Energy Agency forecasts a slower growth of 1.2 million bpd.

The U.S. dollar's rise due to expectations of sustained high interest rates has led to increased costs for holders of foreign currencies when purchasing oil.

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