Oil prices are rising against the backdrop of OPEC+ decisions and an increase in the US national debt limit

In the second half of the week, oil prices increased actively on the news about the increase in the US national debt limit and in anticipation of the next meeting of OPEC+.

The President of the United States signed an order agreed upon by representatives of both houses of Congress to increase the limit of the US national debt. Disputes over the move, which lasted for several weeks between Democrats and Republicans, led to a sharp outflow of speculative capital from commodity markets and a fall in futures.

At the meeting of the OPEC+ countries, which was held on June 4, it was decided to reduce the total volume of oil production by approximately 1.4 million barrels/day to 40.46 million by OPEC countries and non-OPEC countries from January 1, 2024 barrels/day, and to reduce production by 2 million barrels/day to 41.856 million barrels/day by the end of 2023.

Since Wednesday, when the U.S. Senate approved an increase in the national debt limit, August Brent crude futures on the London ICE exchange rose 5% to $76.2 a barrel, while July WTI futures on the New York Mercantile Exchange the NYMEX exchange rose by 5.4% to $71.75/barrel in two sessions.

Today, oil will continue to rise in price, supported by the OPEC decision and demand growth in Asian countries.

According to Refinitiv Oil Research, an average of 27.73 million barrels of oil were unloaded in the ports of China and India in May, which is 8% higher than in April (26.39 million barrels/day) and is the highest this year.

The decision to reduce oil production against the background of an increase in the amount of speculative capital in the markets can cause "bullish" trends and resume the growth of oil prices. This will stop a weak demand-driven decline in the neighboring biodiesel and vegetable oil markets, where prices have fallen to their lowest level since 2021.