Oil rose to $80 a barrel for the first time since early May

The cost of September futures for North Sea Brent oil on the London ICE exchange during trading on July 12 exceeded $80 per barrel for the first time since the beginning of June, follows from data trading platform.

During the auction, by 16:25, the price of this brand of oil rose by 0.79% to $80.03 per barrel. The last time Brent crossed the $80 per barrel mark was May 1st.

On June 4, the ministers of the OPEC+ countries met, at which they agreed to reduce the quota for oil production from the current level by 1.6 million barrels per day from January 1, 2024. The total quota will be 40.46 million barrels per day. The oil production quota for Russia will be significantly reduced by 650,000 barrels per day, Nigeria – by 362,000 barrels per day, Angola – by 175,000 barrels per day, Malaysia – by 166,000 barrels per day. At the same time, Saudi Arabia’s quota will remain at the current level of 10.48 million barrels per day, while the UAE’s quota will increase by 200,000 barrels per day.

As Deputy Prime Minister Alexander Novak reported, Russia will voluntarily reduce the volume of oil exports in August by 500,000 bpd. He noted that the decision to reduce shipments abroad was made to support “efforts to ensure market balance.” The Deputy Prime Minister also specified that the Russian Federation would reduce oil production by 500,000 b/d in addition to its earlier commitments under the voluntary reduction in oil production.

How wrote Earlier, Vedomosti, oil and gas revenues (OGD) of the federal budget decreased by 47% in the first half of 2023 compared to the same period last year – to 3.382 trillion rubles. As reasons for the decline, the Ministry of Finance cited the high comparison base of last year, the decline in Urals oil prices, as well as the decline in prices and the reduction in natural gas exports. At the same time, there is an exit of the monthly dynamics of OGD to the trajectory corresponding to the base level of 8 trillion rubles. in year.