Oil prices slow growth after reaching highest value since November 2014

Global oil prices on July 6 afternoon slowed down their growth slightly after the cost of US WTI oil peaked since November 2014, according to trading data, Report informs referring to Prime agency.

As of 14:13 (GMT+4), the price of September futures for the North Sea Brent oil blend grew by 0.19 percent to $77.31. August futures for WTI oil rose in price by 1.58 percent – to $76.35 per barrel, while earlier in the course of trading, they reached a maximum price since November 2014 at $76.98 per barrel.

Oil rises in price after unsuccessful OPEC+ talks on the further fate of the output cut deal. The meetings of the alliance on July 1 and 2 ended in vain due to the principled position of the UAE on the terms of the extension of the deal until the end of 2022. The third round of negotiations on July 5 was postponed, and a new date has not yet been announced.

The UAE opposes the decision to extend the deal right now, ten months before the official deadline. Firstly, the UAE doesn’t see the need to make a decision so soon, and secondly, it insists on increasing the country’s base production level. At the same time, the UAE supports further easing OPEC+ restrictions in August-December.

“I think a compromise will be reached which should allow additional barrels into the market from August,” said Ole Hansen, head of commodities research at Saxo Bank A/S. “The political pressure from large consumers such as India and China will grow, with Washington probably also adding some pressure.”