Inspenet, July 25, 2023.
The price of West Texas Intermediate (WTI) oil for September delivery in New York rose $1.42 to $77.07 per barrel (dpb) . During the week, US crude rose 2.2% following increases of 2.1%, 4.6% and 2.1% in the previous three weeks.
For its part, British Brent crude for delivery in September closed the last trading session in New York with an increase of 1.43 dollars, reaching 81.07 dpb . For the week, European benchmark crude rose 1.5%, after posting gains of 1.8%, 4.8% and 1.4% in the previous three weeks.
The rise in the price of oil
During the VIII OPEC International Seminar in Vienna, the United Arab Emirates Energy Minister, Suhail Mazrouei, told the media that OPEC+ is always ready to balance the oil markets if necessary. He stressed that an alliance of the main producers is just a phone call away to help consumers if they need it.
So far in July, oil prices are up around 9%, after a 4% rise in June. This trend was also influenced by US inflation data, which suggested that the Federal Reserve may be less aggressive on interest rates in the future.
Despite these increases, Brent crude prices failed to stay above the OPEC+ target of $80 due to disappointing data on economic growth in China and weak demand for gasoline in the United States.
What is OPEC+ and which countries are part of it?
It is an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC oil-producing countries. This collaboration was established with the objective of coordinating and regulating the production and prices of oil in the international market .
OPEC+ is made up of OPEC members, joined by other producers such as Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan.
They participate in joint meetings with the Organization of the Petroleum Exporting Countries and can make joint decisions, but are not bound to follow the provisions agreed by the parent organization. This means that even if OPEC decides to implement production cuts, additional OPEC+ members may decide not to apply them. It is important to mention that Saudi Arabia and Russia are the main players within OPEC+ .
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