Brent barrel remains trading above $100 per barrel

On Friday, July 15, oil trading ended with growth. Brent crude rose 1.26% to $100.99. In the American session, the price rose to $102.61. The recovery came in anticipation of US President Joe Biden's visit to Saudi Arabia. Biden went on tour to convince Middle Eastern countries of the need to increase oil production.

After the meeting, the crown prince of the kingdom, Mohammed bin Salman, said that Saudi Arabia could increase oil production to 13 million barrels per day from the current 10 million, after which the capacity would be exhausted. At the auctions in Asia, the market took Biden's visit to Saudi Arabia calmly.

The issue of the mechanism for limiting prices for Russian oil was not discussed at the meeting of the heads of the Ministries of Finance and Central Banks of the G20 countries. Yellen is only trying to convey to ministers the benefits of capping oil prices. The G20 itself is not eager to introduce a price ceiling, since for most countries it makes no sense to introduce a ceiling. We are already selling oil below the market. Russian Deputy Prime Minister A. Novak previously called a comfortable price for Russia in the range of $45-55 per barrel. At this price, the oil industry will feel comfortable. It remains to wait for a new budget rule so that exporters do not go into negative territory.

According to the latest figures from Baker Hughes, the number of oil rigs in the US rose by 2 units last week to 599 units. The total number of oil and gas rigs increased by 4 units over the week, to 756 units.

On Monday, July 18, Brent oil costs $101.89 per barrel. If buyers hold the current level on Monday, the prices will continue to rise to $106. The dollar is being corrected, all conditions have been created for price increases. Saudi Arabia will not quickly increase production by 2 million barrels per day.