The expert predicted oil prices this week

This week, Brent crude oil will trade in the range of $79-87 per barrel. At the same time, a new escalation of the situation in the Persian Gulf could quickly bring prices back above the $90 mark. Ilya Rusyaev, a business consultant and founder of the Rusyaev Club business community, told Izvestia on August 3.

According to him, oil prices started the week with a decline after the decision of OPEC+ countries to increase production. Additional pressure on the market was exerted by weak business activity indicators in China and the United States, as well as reduced concerns about supply disruptions.

He clarified that on August 2, OPEC+ members agreed to increase oil production by 188,000 barrels per day. After that, the price of Brent decreased by about 7% and approached the level of $ 83 per barrel. Earlier in July, the quotes increased by more than 20%.

"The market takes into account the accelerated withdrawal of the alliance from voluntary production restrictions of 2.2 million barrels per day. An additional pressure factor was investors' doubts about the sustainability of demand against the background of weak manufacturing indices in China and the United States," the expert explained.

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Another factor was the reduction of the geopolitical premium in the cost of oil. Tanker traffic through the Strait of Hormuz is gradually recovering, and reports of possible truce talks have reduced concerns about shipments from the Persian Gulf. At the same time, the market continues to be supported by restrictions on certain trade routes in the Red Sea, disruptions in the supply of Kazakh oil through the Caspian pipeline route, and a reduction in crude stocks in the United States.

According to Rusyaev, the publication of the American labor market report will be an important event of the week. These data may affect oil prices through the dollar exchange rate and market participants' expectations regarding future fuel demand.

On August 2, OPEC+ countries decided to adjust September quotas and increase total oil production by 188,000 barrels per day. Saudi Arabia and Russia will account for the main share of the increase, which will increase production by 62,000 barrels per day to 10.478 million barrels and 9.949 million barrels per day, respectively.