Oil is volatile after the OPEC+ meeting

The price of oil showed a decrease after the end of the OPEC+ meeting, at which it was decided to increase oil production more intensively in July and August: instead of the planned monthly growth of 432 thousand barrels per day, there will be 648 thousand b/d. 

OPEC+ participants expect demand to grow in the summer for two reasons: an increase in traffic volumes and the gradual lifting of coronavirus restrictions around the world. Therefore, the decision to strengthen production will balance the market even more. 

At first, the oil market reacted with a decline in quotations. Brent dropped from the level of $118.30 to $116.40 per barrel. WTI declined from $117.60 to $115.50. 

However, on Friday afternoon, prices moved back to growth. The current Brent quote is $118.40, WTI is trading at $117.40 per barrel. Analysts believe that demand is supported by the gradual lifting of epidemic restrictions in China, which, if not for the latest decisions of OPEC+, could have contributed to the growth of oil in the region of $ 140 per barrel. 

Speculators continue to bet on the growth of oil, although today's rebound is most likely in the nature of growth before the weekend. 

Also tonight, you should pay attention to the data on the number of drilling rigs operating in North America from the oil and gas service company Baker Hughes. In the week to May 27, their number decreased by two – to 574 units.