Oil Rose with Saudi Arabia Decision

Oil Rose with Saudi Arabia Decision

Oil prices rose in Saudi Arabia's decision to stop voluntary production cuts ahead of stock data expected to be released in the United States (US). With the effect of Suddi Arabia's decision to halt voluntary production cuts at the end of this month, oil approached $ 39 a barrel. Futures contracts in New York could rise to 0.8 percent after a rising Monday. According to a survey by Bloomberg, crude oil inventories in the U.S. are expected to decrease last week to fall for the fourth drop in the past five weeks. Since oil prices dropped to zero in April, after the supply cuts reduced the abundance of oil in the market and the coronavirus bans were stretched; in some countries it has started to rise with the increasing demand. However, it is expected that it will take a long time to recapture the levels before the pandemic. Goldman Sachs Group Inc. lowered its expectation in the short term due to weak returns from refining. Goldman Sachs said in an announcement: "The OPEC + coalition's decision to extend its historical supply cuts for another month was already over-priced in the market, and consumption forecasts are ahead of more gradual and still highly ambiguous recovery." Another view came from Sydney CMC Markets Asia Pacific chief market strategist Michael McCarthy. McCarthy used the following words on the subject: "Considering that the result came, which I think is the weakest from the OPEC + talks, I was surprised by the strong course in oil. The stock figures of the US may be effective again this week, especially with the rise of rock oil producers are increasing their activity again ." July Texas West Texas oil (WTI) rose 31 cents on the Nymex market and reached $ 38.50 a barrel at 11:25 am Singapore time. Prices rose by 1.8 percent in the early hours. Brent oil for August rose 0.6 percent in the ICE Futures Europe market after falling 3.6 percent in the previous session and reached $ 41.05 per barrel.