Oil continues to make progress.. West Texas Intermediate is at its highest level since 2014

Oil continues to make progress.. West Texas Intermediate is at its highest level since 2014: Oil continued to make progress today,
following the failure of the OPEC negotiations, as it continued to deliver record performance in the commodity trading market. 

Evest follows everything that’s going on and relays it to you in the following lines.

West Texas crude is at a 6-year high.. OPEC is now going through a crisis

West Texas Intermediate crude prices rose during trading on Tuesday to new highs,
backed by the apparent failure of the OPEC + negotiations, reaching the highest level since 2014.

The cost of the West Texas Intermediate crude barrel exceeded $77.

While Brent crude rose to its highest level since October 2018, at $77.84.

According to experts, countries participating in the cartel must find a compromise.

The failure of the negotiations will lead to an economic conflict over last year’s price war between Russia and Saudi Arabia.

Bloomberg

Bloomberg reports that West Texas Intermediate crude prices are at a six-year high, with August futures closing to $77. 

The Agency believes that the cause was the stalemate in the OPEC + negotiations and, in particular, the position of the UAE.

All this leads to the fact that the market may not depend on increased supplies from August.

Freedom Finance analyst

In addition to the lack of agreements, OPEC+ is fueling oil prices and the policy of the US Federal Reserve System (FRS),
according to an analyst at Freedom Finance. 

According to him, the Fed continues to ignore inflationary risks and advocates a super-accommodative monetary policy. 

The expert explained that “this is reflected both in the updating of the historical rises
by the American indicators and in the increased speculative element of West Texas Intermediate and Brent crude prices.”

OPEC experienced a boom in 2020, but conflicts are unavoidable. 

Members of the organization discussed the nuances in restoring production during the week
but were unable to persuade the UAE to sign under the new schedule. 

This led to the fact that the big OPEC + deal, which determined the fate of the oil market for five years in a row, was in danger again.

OPEC member countries are trying to agree on a common position on restoring oil production by the end of 2022.

After that, they will present the document at the OPEC + meeting, where Russia will participate in the negotiations. 

There was hope for a common position on July 5,
but the OPEC + meeting scheduled for Monday evening was canceled,
and a new date was not even announced.

UAE position

The negotiations stalemate is due to the position of the UAE.

The country called for an increase in shares for itself.

The UAE has not been persuaded in a week. 

According to Bloomberg, the UAE usually follows the Saudi position.

Now, UAE, which announced in autumn 2020 its intention to invest $122 billion in increasing oil production through 2030,
has called for an increase in its share within the organization from 3.2 million to 3.8 million barrels.

The UAE is trying to negotiate new terms as quickly as possible because of Iran, which might agree in the near future to a new nuclear deal
with Joe Biden’s administration and return to the oil market. 

In accordance with the current agreement, all OPEC + participants can review the base level of production no later than the expiration date of the document.

Financial Times

The talks, according to the Financial Times, could be resumed at any time,
but in the “Saudi-Russian camp” after the meeting ends,
they say the meeting was not postponed, but rather canceled. 

Meanwhile, information is circulating from the UAE side that Saudi Arabia and Russia are considering the UAE proposal,
and until this time the negotiations have been postponed.

According to a key NATO delegations source to the news agencies,
informal negotiations take place every day, and the negotiation process itself does not stop. 

Yesterday, the source said, both the OPEC leadership and key market participants – Russia and Saudi Arabia – contacted the parties
to the agreement at night, and various options were being worked on. 

It is hoped that a consensus will be reached, because “this is a common market,
common problems and must be resolved,” according to the source.

The source did not rule out a cartel meeting at the end of the week.

Iraqi Oil Minister

Iraqi Oil Minister Ihsan Abdul-Jabbar said on Sunday that he expects the next meeting to be announced in 10 days.

He indicated that he does not want a price war and an increase in oil prices above the current level while supporting the extension of the current meeting
until the end of 2022 and a gradual increase in oil production.

If exporters do not agree in the near future, this could lead to a sharp jump in oil prices.

Now there is a Deportation in the oil market: The price of current futures is higher than the price of subsequent futures. 

The difference in cost is now $5 – a level rarely seen in the market over the past 20 years.

Deportation means that traders are interested in selling goods at the moment, and financial investors prefer to fill positions.

In a conversation with Bloomberg, Neil Quilliam, a researcher at the British analytical center Chatham House, did not rule out the UAE’s withdrawal from OPEC, “if its requirements are not met.” A key source indicates that the issue of the UAE’s withdrawal from the deal is “not worth it.” He added that the negotiation process was “difficult, but decisive.”

Asian stocks mixed 

The Nikkei 225 index on the Tokyo Stock Exchange fell by about 1% to 28366 points.

On the other hand, the Shanghai Stock Exchange performed well with an increase of 0.67%.

Hong Kong lost 0.85%,

Sydney 0.76%, and Seoul 0.65%. 

Wall Street also saw a mixed performance yesterday, with the Dow Jones index falling by 208.98 points to 34.577.37
and the Standard & Poor 500 losing 0.2% to 4.343.54, cutting a 7-day bullish trajectory. 

The Nasdaq composite index closed at a new record high of 0.17% to 14663.64 points. 

Oil continues to make progress.. West Texas Intermediate is at its highest level since 2014