Global oil prices begin to rise ahead of OPEC report’s publication

Global oil prices on June 14 afternoon moved into the “green” zone ahead of the publication of the OPEC monthly report, investors also continue to monitor supply and demand factors, Report informs referring to the auction data.

The price of August futures for Brent crude rose by 0.85% to $123.31 per barrel, July futures for WTI grew 0.74% to $121.83. In the morning, oil prices fell, although slightly - by about 0.1%.

Later on June 14, OPEC will publish a report, which will feature forecasts of the global supply of this raw material and demand for it, as well as comment on the situation in the oil market.

Traders at the same time continue to assess the prospects for supply and demand on the news from China and Libya. So, earlier, Beijing authorities identified a new local outbreak of COVID, while on June 13 the city authorities began to ease restrictions in most areas. Investors fear that tightening coronavirus restrictions could affect demand from China, one of the largest importers and consumers of oil.

10:20

Global oil prices fell slightly on June 14 morning amid the appreciation of the dollar against world currencies, prices are also influenced by expectations on demand from China and the situation in Libya, Report informs referring to the auction data.

The price of August futures for Brent crude fell by 0.16% to $122.07 per barrel, July futures for WTI - by 0.12% to $120.78.

The dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) is above 105 points after a multi-day increase, having overcome such a mark for the first time since December 2002. The strengthening of the US currency makes oil less available for purchase in other currencies.

Traders are also evaluating the prospects for demand from China, one of the world’s largest oil consumers and importers. Earlier, Beijing authorities identified a new local outbreak of coronavirus, while on June 13 the city authorities began to ease anti-COVID restrictions in most areas. Investors fear a new tightening of coronavirus restrictions in China, which could negatively affect demand expectations.

In terms of supply, the situation in Libya is an important factor for the market. Earlier, the country's oil minister, Mohamed Oune, told Bloomberg that oil production in the country had practically stopped due to the political crisis and was at about 100,000 barrels per day instead of 1.2 million barrels last year.

OPEC’s monthly oil market report will be released later on June 14. Bidders hope to find more clues from the organization about supply and demand forecasts in the document.