The previous Monday began for the world oil market with growth due to the news that the OPEC + countries in July reduced the degree of compliance with the terms of the Vienna agreement to 109%.

A month earlier, in June, the implementation rate was 121%. However, the growth was short-lived and stopped the next day. On the same day, the Financial Times reported that the Saudi Arabian state oil company Saudi Arabian Oil Co. (Saudi Aramco) has lost perpetual right to develop oil and gas fields of the country, now this term is limited to 40 years. Reuters reported on August 22 that Saudi Aramco is postponing an IPO for an indefinite period. Later, the company denied this information, and Saudi Energy Minister and Chairman of the Board Khalid Al-Falih noted that the government is still committed to the initial placement of Saudi Aramco shares.

On Tuesday, there was even a slight decline in quotations. The price of November futures for the North Sea petroleum mixture Brent was 0.03% down to 76.48 dollars per barrel, October futures for WTI oil - 0.04% to 68.84 dollars per barrel.

After a pause in one day the growth continued and its pace accelerated because of the optimism of the “bulls”. The price of November futures for the North Sea oil blend of Brent brand grew by 0.39% to $ 76.59 per barrel, October futures for WTI oil - by 0.6%, to $ 68.94 per barrel. As a positive factor for the oil market remained a new trade agreement between the US and Mexico. US President Donald Trump previously announced that agreements have been reached with Mexico to conclude a new trade agreement in place of the current trilateral agreement of the United States, Mexico and Canada on the North American Free Trade Area (NAFTA). He also added that it has not yet been decided whether Canada will join this agreement or whether it will negotiate a separate treaty with it.

On Thursday the positive dynamics continued. The main reason was the publication of weekly statistics from the US Department of Energy on oil reserves in the country. According to the report commercial oil reserves in the US for the previous week fell by 2.6 million barrels, although analysts expected the decrease in stocks of only 0.7 million barrels. As a result, the value of November futures for the North Sea oil blend of Brent brand grew by 0.22% - to 77.63 dollars per barrel, October futures for WTI oil - by 0.26%, to 69.69 dollars per barrel. Investment analyst of Rivkin Securities William O'Loughlin whose opinion is led by Reuters, notes that the data of the Ministry of Energy of the United States indicate a decrease in oil reserves in the country for the second week in a row, and this contributes to higher raw material prices.

The end of the week was remembered by the statement of the chief of staff of the Iranian armed forces Mohammad Bagheri that Iran will block the export of oil in the Middle East if the Islamic Republic is not allowed to transport oil through the Strait of Hormuz. Iran threatens to block Hormuz from July. The statement of the Iranian commander took place in the light of the resumption of US economic sanctions against Iran. In November, sanctions will hit the most painful place - the export of oil. The Strait of Hormuz is the most important point for world oil trade. About 30% of the total volume of oil transported by sea routes is transported through it.

 

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