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Energy

Brent barrel price drops 6.75 percent to 68.62 dollars

The price of a barrel of Brent crude for delivery in September suffered a sharp drop in the London futures market, of 6.75 percent, and closed the session at a price of 68.62 dollars.

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The North Sea crude, a reference in Europe, ended at a price of 4.97 dollars below the 73.59 dollars with which it had closed transactions on Friday.

On the basis of price behavior this Monday was the decision of the OPEC+ group, which brings together the members of the Organization of Petroleum Exporting Countries (OPEC) with ten allies, such as the Russian Federation, to increase its production.

The decision put an end to the trend of the last few weeks of rising oil prices.

After closing high on Friday, oil has accused since the beginning of the session the OPEC+ announcement, made during the day of Sunday, to increase joint production in a staggered manner in the next five months, until reaching another two million of daily barrels in December.

In this way, OPEC+ reduces to 3.8 million barrels a day the cut agreed in April 2020 – then from 9.7 million barrels a day – in response to the decline in world oil consumption following the crisis caused by the pandemic of new coronavirus.

OPEC estimates that world consumption of crude will increase 4.8 percent in the second half of this year and 3.4 percent in 2022, passing the threshold of 100 million barrels a day.

The agreement reached in Dubai, on Sunday, will allow five states to increase their production and ends the division in OPEC+, created by the intention of the United Arab Emirates (UAE) to increase their production.

In a statement released on Sunday, the group made it known that, in addition to the UAE, also the Saudis, Russians, Iraqis and Kuwait will have their limits revised upwards.

OPEC members are Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE and Venezuela. The OPEC+ group also includes Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russian Federation, Sudan and South Sudan.