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Oil Rose On Hopes For Compensation Of The Reduction Of OPEC+

Oil Rose On Hopes For Compensation Of The Reduction Of OPEC+

Benchmark oil prices are rising on Friday amid hopes that OPEC+ countries, which did not fully meet their obligations in may-July, will compensate for insufficient production cuts.

The price of October Brent futures on the London ICE Futures exchange was $45.07 per barrel by 8:06 Moscow time on Friday, which is $0.17 (0.38%) higher than the closing price of the previous session. At the end of trading on Thursday, August 20, these contracts fell by $0.47 (1%).

WTI futures for October on the new York Mercantile exchange (NYMEX) by this time rose in price by $0.13 (1.3%) to $42.95 per barrel. In the previous session, the value of these contracts fell by $0.29 (0.7%).

The results of the meeting of the OPEC+ monitoring Committee (JMMC), which took place on August 19, were able to support the market, as participants continue to focus on compliance with the deal on production cuts and compensation.

OPEC+ countries that exceeded their quotas in May-July will have to jointly reduce production by another 2.31 million barrels per day (b/d) by the end of September, according to data from S&P Global Platts.

On Thursday, August 20, oil prices were pressured by data from the US Department of labor, which showed an unexpected increase in the number of new applications for unemployment benefits in the week ending August 15, to 1.106 million.

Traders also continue to monitor the situation with the spread of coronavirus. Since the beginning of the COVID-19 coronavirus pandemic, the number of infected people in the world as of 08:00 Moscow time on Friday reached 22,678,483, an increase of 267,183 over the day, the American Johns Hopkins University reported. The number of victims from virus-related diseases in the world reached 793,698 against 787,672 people the day before; more than 14.5 million people were cured.