The energy minister of Saudi Arabia stated that an OPEC agreement to increase production is “inevitable” as Oil steadied just below $67/bbl.This may lead to increase in the Petroleum Industry Jobs.
Due to growth of 1.4% in the last three sessions, there is increase of 0.4% in futures in New York. Followed by talks in Moscow, Saudi Energy Minister Khalid Al-Falihstated that he is expecting OPEC to reach a deal that will gradually enhance the output. Alexander Novak, his Russian counterpart stated that they agree on the need for an increase, whereas few things which are still under consideration are the volume and timing of the extra production.
At Vienna, there will be a meeting of the Organization of Petroleum Exporting Countries which is most likely to be a contentious summit. There is opposition from Iran, Iraq and Venezuela regarding the proposal by Saudi Arabia and Russia for the relaxation of output caps. On the contrary, Washington is still criticizing the cartel for boosting prices. However, there will be talks between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman.
TamasVarga, an analyst at PVM Oil Associates Ltd. in London stated that “Those in the know might get a hint as early as today -- the topic will surely come up between President Putin and the Saudi crown prince as they watch their countries’ teams in today’s opening game of the football World Cup,”
For July delivery, West Texas Intermediate crude traded at $66.94/bbl on the New York Mercantile Exchange, up 30 cents, at 12:22 p.m. London time. Brent futures for August settlement traded at $76.80/bbl on the London-based ICE Futures Europe exchange, up 6 cents. The global benchmark crude traded at a $9.97 premium to WTI for the same month.
In the month of May, the Crude rallied to a three-year high and lost steam as Saudi Arabia and Russia signaled they may raise output. However, there was criticism from the U.S. President Donald Trump for inflating prices. Saudi Arabia is consideringwide range of scenarios to increase in supplies. There is increase in crude production up to 10.9 MMbpd, topping 10 million every week which may lead to growth in the Petroleum Industry Jobs!
