The Organization of the Petroleum Exporting Countries (OPEC) is considering meeting this week as soon as possible to discuss whether to extend record production cuts end-June afterwards.
Brent crude LCOc1 was unchanged at $37.84 a barrel, in the first day of trading in the contract with August as the front month.
West Texas Intermediate (WTI) crude futures CLc1 for July delivery were at $35.53 a barrel, up 4 cents, or 0.1%, by 06:29 GMT.
Price drops were after the front-month Brent and WTI prices announced their strongest May gains over the years. OPEC crude oil production has been reduced to its lowest level in two decades, and gains have been increased. Oil prices are expected to recover as coronavirus lockdowns return to new normal in more countries.
OPEC + agreed to cut production by 9.7 million barrels (bpd) daily in May and June following the demand crash caused by coronavirus pandemic. If the decision is limited to June, there may be a cautious decline in prices given that the downside prices are not caught. However, if OPEC + goes for a three-month of extension, prices are likely to reach $ 40.
While tensions between the U.S. and China intensified in the global financial markets, traders watched the public revolts against polices’ racist attitudes during the weekend in big cities.
According to sources, Saudi Arabia offers to extend record cuts by the end of the year after May and June, but has not yet received support from Russia.
OPEC meeting is suggested to be held on 9-10 June chaired by countries such as Algeria, Saudi Arabia, Iraq and Kuwait in order to facilitate oil sales . Russia indicates the intention that the meeting could take place on June 4 to be earlier.
Meanwhile according to sources, records indicate that the supply in North America is falling as the number of US and Canadian oil and gas facilities fell to its lowest level by May 29.