Oil was mixed in Asia on Wednesday morning, but the production dispute between Saudi Arabia and the United Arab Emirates (UAE) continued to hover above $ 73. The controversy has stymied efforts by the Organization of the Petroleum Exporting Countries (OPEC) to boost production as the fuel demand outlook is bright.
Brent oil futures down 0.05%. Was 74.49. After closing the previous session with a loss of 2.4%, WTI futures increased by 0.05%. Rose to 73.41. Due to concerns that this controversy will prevent the recovery of more crude in the market, prices soared towards the highest intraday level since early 2014.
Buyers of black liquid are already feeling the pinch as Saudi Aramco (SE: 2222) raises the official selling price of Arabian light crude by 80 paise per barrel to $ 2.7 above the regional level in its main Asian market.
This increase is the largest profit per month since January 2021 and is an indication that the company will not increase supply in August. It also pointed to a tight market as the Cartel dispute could mean that supply would not increase in August.
JP Morgan Chase & Co. (NYSE: JPM) is one of the banks expecting a deal to end, with OPEC + expected to agree to increase production by 400,000 barrels a day each month for the coming weeks. The rest is 2021.
However, the ING Group (NYSE: ING) NV pointed out that the widening gap between the positions of Saudi Arabia and the United Arab Emirates may prompt other cartel members to engage freely with everyone who can bypass production restrictions and reduce prices.
Unlike sending the price between Saudi Arabia and Russia to the negative territory in April 2020, everyone involved will make efforts to avoid a price war.
Continued OPEC + talks lead to U.S. “Encouraged” and officials have spoken with their colleagues in Saudi Arabia and the United Arab Emirates in hopes of reaching an agreement to curb rising oil prices, White House press secretary Jen Zhaki told a conference.
Investors are now seeking a U.S. return from the U.S. Petroleum Corporation. Waiting for crude oil supply data.