Oil rose on Friday on expectations that OPEC’s decision to raise production targets slightly more than planned will not significantly affect tight supply in global markets and will not increase demand as China relaxes controls from Covit-19.
The OPEC Plus consortium, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent oil producers, including Russia, decided to increase production to 648,000 barrels per day in July and August, from 432,000 barrels per day in July. .
Brent futures were up $ 2.11 or 1.79% at $ 119.72 a barrel, while US oil futures were up $ 2 or 1.71 percent at $ 118.87 a barrel.
As demand for support increased and daily COVID-19 cases dropped, Shanghai, the financial center of China, and the capital, Beijing, eased anti-Corona anti-virus controls this week and the Chinese government pledged support to stimulate the economy.
U.S. stock is low
U.S. crude oil stocks fell 5.1 million barrels on Thursday’s weekly inventory, with higher-than-expected increases and petrol stocks falling, confirming the supply shortfall.
“OPEC + will supply much less oil to the market than agreed, so it will not bring about the expected improvement,” said Carsten Fritz, a Commerzbank analyst.
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