Oil fell in Asia on Monday morning, with investors in tenterhooks ahead of a meeting of a key organizer of the Petroleum Exporting Countries (OPEC) and allies (OPEC +).
Brent oil futures were down 0.07% at $ 76.12 after falling to its first weekly decline of six in the previous week. WTI futures were also down 0.07 %.$ 75.11.
The latest meeting comes as Cartel voted to increase production by about 2 million barrels a day from August to December 2021 and extend the remaining output cuts to Friday at the end of 2022.
“This latest move raises the bar for the OPEC + Alliance, which has shown great solidarity, which ultimately helped restructure the market following a slump in demand,”.
“A breakdown could be free for all, which could lead to a fall in prices,” the note added.
Saudi Arabia’s Energy Minister Prince Abdul Aziz bin Salman Al Saud called for “reconciliation and rationality” to unite ahead of Monday’s meeting.
“You have to balance the current market situation by maintaining the ability to react to future developments … there has to be an extension if everyone wants to boost production,” he told local media, where he expressed uncertainty over COVID-19 and especially production from Iran and Venezuela.
Meanwhile, in the United States, Baker Hughes Co. reported in its report on Friday that the number of oil and natural gas rigs has risen from 5 to 475 in the week to July 2, the highest since April 2020. This initial indicator of future production rose in the third week of the last four.