Fri 21 August 2020:
Escalation in US-Iran tension and fall in crude stocks also propping up prices
Brent crude oil prices climbed on Friday after OPEC+ reassured the markets that it will strictly cut its total oil production by the determined level of 7.7 million barrels per day.
International benchmark Brent crude was trading at $45.01 per barrel at 0605GMT for a 0.2% increase after closing Thursday at $44.90 a barrel.
American benchmark West Texas Intermediate was at $42.84 per barrel at the same time, up 0.05% after ending the previous session at $42.82 a barrel.
The prices increased as OPEC+ vows to comply with determined levels oil cuts for decreasing the available global supply to support the prices in the global oil market.
The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations on Wednesday called for vigilance by all participating countries underscoring the fragility of the market and significant uncertainties, particularly associated with oil demand.
OPEC oil producers and allies, like Russia, a grouping dubbed OPEC+, met on Wednesday to review compliance with oil cuts meant to support oil prices during the coronavirus pandemic.
Pointing to signs of gradually improving market conditions and the lessening of the gap between global oil demand and supply, the group warned against a slower pace of recovery than expected with growing risks of a prolonged wave of COVID-19.
OPEC and its allies forced oil nations pumping over production targets to cut further in August-September amid concerns of a sluggish recovery in oil demand, saying full conformity was vital for the ongoing rebalancing efforts and to help deliver long-term oil market stability.
OPEC+ agreed on June 15 to lower their current crude oil production cut level to 7.7 million barrels per day (bpd) starting from August, from the existing 9.7 million bpd.
The Joint Ministerial Monitoring Committee (JMMC), which closely watches how much crude oil each OPEC+ member produces, will hold its next meeting on Sept. 17.
By Sibel Morrow | Anadolu agency
