Oil quotes have seen a slight rise after yesterday’s fall. Brent crude at 10:15 EET was selling at $64.30, whilst WTI with July delivery was trading at $58.73 per barrel. At Monday’s close, North Sea oil on July contracts was trading at $63.92 a barrel and the price of light crude with delivery in July at the close of the New York session was $58.33 per barrel.
In anticipation of OPEC convening, rumours are filling the market. Saudi Arabia is not changing course is pushing ahead with its strategy. They are continuing to put pressure on the other cartel members, enlisting the help of Qatar and Kuwait to help keep the quota as it is. On the other side of the coin there is Venezuela which wants to conduct extensive negotiations with OPEC representatives, with a view to reduce the production quota.
Since the Saudi’s position remains strong, investors are quite pessimistic. According to data from 19th May, Hedge funds and other financial management companies have reduced their long positions for WTI by 7.1% and increased their short positions by 30%.
Today’s oil prices will be affected by data from the American oil institute on reserves in the USA. Nevertheless, Brent will trade in the corridor of $63-68.5 a barrel, whilst WTI will stay sat somewhere between $57.7-62 per barrel.