Economic

oil prices rise amid the commitment of “OPEC +” to reduce production

Crude oil prices rose at the beginning of the week, Monday, as information was received on the commitment of producers within the “OPEC +” alliance to reduce oil production as scheduled. 

On Thursday, the OPEC alliance assured that the majority of members comply with the reduction quotas stipulated in an agreement reached last April, to cut production by 9.7 million barrels per day, ending in next July.

However, the improvement in oil prices at their current prices of $ 42 for Brent crude, is still less than the aspirations of most of the “OPEC” producers, who see it as a small price.

oil prices rise amid the commitment of "OPEC +" to reduce production

By 08:30 GMT, Brent crude for August delivery rose 0.71 percent, or 31 cents, to $ 42.50 a barrel.

US West Texas Intermediate crude for August delivery futures fell 0.65 percent, or 26 cents, to $ 40.10 a barrel.

The equilibrium price for OPEC producers starts from an average of $ 55 for some countries such as Kuwait and Qatar, and rises to $ 80 for other countries, such as Saudi Arabia.

In early August, production cuts will be reduced to 7.7 million barrels per day until the end of 2020, and a second reduction will be made to 5.8 million barrels per day starting from early 2021 until April 2022.

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