Over the psychological limit of $90 per barrel its international prices oil, and investors continue to assess developments in the Middle East; and their effects on its global supply «black gold», as at the end of July it was noted «Launch» and within the current week prices began to deescalate.
Although the transit of oil tankers from the Straits of Hormuz continues, oil markets continue to incorporate a significant geopolitical risk premium, as attacks on ships and increased risks to navigation maintain uncertainty at high levels and concern investors and analysts.
The Brent oil prices rose 25% in July, the strongest since MarchAs a result of geopolitical tensions and global oil supply concerns. Correspondingly, American slow WTI prices were closed with a rise of over 20% in July.
At the heart of interest remain the Straits of Hormuz and Bab el Mandeb, two of the world's most important sea transport routes. Although oil exports have not been stopped, increased insurance costs, the delays in transport and the risk of new attacks continue to affect market operation, keeping the geopolitical premium high in prices.
The OPEC+ meeting
At the same time, investors turn their attention at today's OPEC+ meeting, from which a new increase in production is expected to be approved for September by countries applying voluntary production cuts from 2023.
The increase in production by 188,000 barrels a day for September will be the last until OPEC+ member states decide what policy they will follow in the future., as reported by Reuters information.
However, analysts estimate that increasing production will hardly lead to substantial price deescalation As long as geopolitical risks remain increased and maritime transport safety is still a key source of market uncertainty.
