Oil prices on the Fuel Exchange in New York will significantly increase in response to the exacerbation of the geopolitical situation and the operation of OPEC+ countries in terms of oil supply – the brokers inform.
A barrel of West Texas Intermediate oil in deliveries at VII costs over $ 63 at Nymex in New York, which is almost 4 percent.
Brent on ICE on VIII is valued above $ 65. For a barrel, after an increase of over 3.5 percent
Analysts indicate that a lot is happening in geopolitics.
Ukrainian attack in Russia
Ministry of Defense Russia On Sunday, she reported that several Russian military aircraft stood on fire as a result of an attack of Ukrainian drones.
Interfax-Ukraina reported that “drones are attacking planes that bombed Ukrainian cities every night. Currently, it is known about hitting over 40 aircraft, including A-50, Tu-95 and Tu-22m3”.
Iranian uranium
Meanwhile Iran He criticized reports indicating his growing supplies of enriched uranium.
On Saturday, the Associated Press said that Iran accelerated the production of uranium reserves enriched to a level of 60 percent, similar to the degree needed to create nuclear weapons. The agency reached two confidential reports of the International Atomic Energy Agency (Maea).
“Significant acceleration of production and accumulation of highly enriched uranium by Iran, the only country that does not have nuclear weapons, but produces nuclear material, is a reason for a great concern” – emphasized in one of the reports.
The document states that as at 17 May, the total amount of uranium enriched by Iran to 60 percent. It was 408.6 kg, which means an increase of 133.8 kg over the past three months. In the previous settlement period, from December to February, an increase of 92 kg was recorded.
According to Maea, about 42 kg of uranium enriched with 60 percent Theoretically, it is enough to produce one atomic bomb if it is enriched to 90 percent.
The next duties of Trump
Meanwhile, as part of the president's latest activities USA Donald Trump In the trade war, duties on steel and aluminum are to increase.
Donald Trump announced on Friday that duties on steel and aluminum, imported to the United States, would increase on June 4 from 25 to 50 percent. Additional fees – as he emphasized – will strengthen the American steel industry.
In turn, in the case China The US President pointed out that this country “totally violated” an agreement on customs with the United States, referring to an agreement, under which both parties significantly reduced the mutual customs rates introduced as part of the trade war.
The US president said at Truth Social that the duties he imposed practically cut off China from the American market, which “was devastating for them” and led to social unrest.
Increased extraction by OPEC+
In turn, the countries of the OPEC+ Alliance agreed on Saturday to increase oil production in July by 411 thousand. Baryłek per day (BPD), which is as much as in May and June, because a group of oil producing countries still increases supply faster than previously planned.
The strategy of the leaders of the Saudi Arabia and Russia group is partly aimed at punishing overproducing allies and regaining market share – including Kazakhstan and Iraq.
The group will now meet on July 6 to discuss the levels of oil production to August.
– Brent oil should be strongly supported in the price range of 60-65 USD for a barrel, until we see more precisely how quickly the real oil production in OPEC+ is growing – says Robert Rennie, head of the research on commodity markets and CO2 emissions at WSPAC Banking Corp.
– We can see the signs that OPEC+ will slow down in the coming months, because some members of the Alliance have already wanted to abandon greater oil supply – he adds.
Source of the main photo: Shutterstock