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Brent Fell To $41.09 Per Barrel

Brent Fell To $41.09 Per Barrel

Oil quotes are moderately declining on Monday on mixed signals after strong growth in the past week.

August Brent futures fell by $0.1 (0.24%) on the London ICE Futures exchange to the closing levels of the previous session and were trading at $41.09 per barrel. On Friday, Brent rose by $0.68 (1.6%).

July WTI futures are down $0.05 (0.13%) to $39.70 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX). During the previous session, the contract rose by $0.91 (2.3%). The price of the nearest WTI futures at the close of previous trades was the highest since March 6, according to Dow Jones Market Data.

Over the past week, Brent has added 8.9% in price, WTI-9.6%.

Oil prices were supported by optimism about the implementation of the OPEC + deal. Iraq and Kazakhstan on Thursday submitted to the OPEC + monitoring Committee plans for compensation for outstanding obligations to reduce oil production, while other countries were given until June 22 to submit their plans.

"The level of execution of the transaction was already higher than the expectations of market participants, and it is probably possible to reach a better level," said Paola Rodriguez Maciu, senior oil market analyst at Rystad Energy, as quoted by MarketWatch.

In addition, oil prices were supported by news about negotiations between the leaders of the European Union on the creation of an economic recovery Fund of 750 billion euros ($840 billion) and the decline in tensions between the United States and China.

"The EU's 750 billion Euro recovery Fund will support the economic recovery in Europe and boost oil demand this summer," said Oanda analyst Edward Moya.

Also, Bloomberg reported on Beijing's plans to increase purchases of American agricultural products to fulfill the first phase of the trade agreement with the United States.

At the same time, the increase in oil prices is being held back by concerns about the growth of new cases of coronavirus infection in China and several American States. Over the past years, 25 new cases of coronavirus infection have been detected in China, including 18 active patients and seven asymptomatic carriers, the state health Committee of the country reported on its official website.

Authorities in Arizona, Florida, California and Nevada on Friday reported another record increase in new cases of coronavirus infection.

"Traffic in Beijing has decreased as authorities struggle with a new outbreak. In the US, Apple was forced to close previously opened stores amid a rise in cases in some States," said ANZ analysts quoted by S&P Global Platts.

The number of active oil and gas drilling rigs in the United States last week decreased by 13 units compared to the previous week - to 266 units. A year earlier, there were 967 installations in the country. The number of oil installations fell by 10 to 189 - 600 less than a year earlier.

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