A drill operates on February 10, 2019 in the Permian Basin Oil and Natural Gas Production Area in Lea County, New Mexico, USA. REUTERS / Nick Oxford / File Photo
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June 6 (Reuters) – Saudi Arabia raised crude oil prices in July, leaving oil prices largely unchanged on Monday, amid speculation that a higher production target for OPEC + oil producers could ease tight supply.
At 12:22 pm EDT (1622 GMT), Brent crude was up 4 cents at $ 119.76 a barrel, after hitting an intraday high of $ 121.95.
US West Texas Intermediate (WTI) crude futures rose 8 cents, or 0.1%, to $ 120.99, a three-month high of $ 118.95 a barrel. The scale dropped by $ 1 in the previous session.
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Saudi Arabia raised its July official selling price (OSP) for its premier Arab light crude oil (OSP) for Asia to $ 2.10 from June, raising it to $ 6.50 premium over the Oman / Dubai price. Concerns about disruptions in supply from Russia. read more
Last week, the Organization of the Petroleum Exporting Countries (OPEC +) and its allies decided to increase production by 648,000 barrels per day for July and August, or 50% more than previously planned. Has raised prices.
“Crude inputs at US refineries are down about 6% from what they were four years ago, and this time this reduction is related to lower crude cover demand, while contributing to austerity in the petrol and diesel markets,” Jim Ritterbush said. , Galena, President of Ritterbush & Associates in Illinois.
The increased target has spread to all OPEC + members, however, many of them have small space to increase productivity and include Russia facing Western sanctions.
“With a few … OPEC + participants spare capacity, we expect OPEC + production to increase to 160,000 barrels per day in July and 170,000 bpd in August,” JP Morgan analysts said in a statement.
On Monday, Citibank and Barclays raised their forecasts for 2022 and 2023, and Russian production and exports are expected to fall by about 1 million to 1.5 million ppd by the end of 2022. read more
Separately, Italy’s Eni and Spain’s Repsol will begin shipping small quantities of Venezuelan oil to Europe soon next month, five people familiar with the matter told Reuters. read more
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Additional report by Shadia Nasrallah in London, Florence Dawn in Singapore and Sonali Paul in Melbourne; Editing by Jason Neely and Chris Reese
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