New York, Apr 5 (EFE) .- The price of intermediate oil from Texas (WTI) closed this Monday with a fall of 4.5%, to 58.65 dollars, after the OPEC + alliance agreed last week to increase its production 2 million barrels per day (mbd) as of May.
At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in May were down $ 2.80 from the close of the previous day.
Texas crude was devalued despite good signs of an economic recovery, as a result of the decision made on Thursday by OPEC +, led by Saudi Arabia and Russia, to gradually increase its oil production and add to its current supply some 2,141 mbd of crude oil in three stages and months as of May 1.
In addition, Iran, which is not committed to voluntary cuts, is also increasing its production.
“The OPEC + decision, perhaps driven by growing Iranian production going to China, probably means that we have already seen the best run for oil in a few months,” said Oanda analyst Jeffrey Halley.
Today’s fall contrasts with the 3.9% rise last Thursday after the announcement of the oil cartel.
Some analysts believe that while last week’s decision was interpreted as a sign of confidence in a new resurgence in demand favored by the expansion of vaccination, now some investors are questioning the situation.
“The strong bullish response to the production decision was an overreaction,” Jim Ritterbusch, president of the energy advisory firm Ritterbusch & Associates, was quoted as saying by The Wall Street Journal.
On the other hand, investors in the US are on the lookout for possible dimplomatic developments between the US and Iran at the meeting of member countries of the 2015 nuclear deal in Vienna tomorrow.
This Monday, however, Iranian deputy foreign minister and negotiator, Abás Araqchí, said there will be no “direct or indirect talks with the Americans.”
“We will negotiate with the joint commission and the 4 + 1 countries and we will tell them our demands and conditions for a return to the JCPOA (nuclear pact),” he stressed.
Gasoline contracts due in May, the new reference month, reduced 6 cents to $ 1.96 per gallon, and natural gas contracts for delivery the same month fell 12 cents to $ 2.51 per thousand cubic feet.
(c) EFE Agency