Oil Prices Settled Mixed Ahead of the OPEC+ Meeting

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Oil prices settled on the mixed territory after reaching new highs. 

WTI traded with a rise of 1.2% at $73.16 a barrel. 

Oil prices have received some support from the passage of an infrastructure construction bill in the United States. It has fueled optimism about the energy demand outlook.

Brent crude dropped by 0.09% at $75.31 per barrel after settling at $75.38 a barrel on Friday. Now the focus is on the OPEC+ meeting, which will be held on July 1. The group was discussing a new partial cancellation of the production cuts that would take effect from August. However, OPEC and its allies have not made the decision yet.

Russian producers believe that August is an excellent period to increase oil production even knowing the expected return of Iran to the markets. They think there is a deficit in the market with current levels. 

The price of natural gas continues to rise

The natural gas markets have broken the rise over the past two days and have crossed the $3.40 level, which was a key resistance level. 

The commodity futures traded firm on Monday.

US president Joe Biden and Russian president Vladimir Putin held a summit suggesting that the Nord Stream 2 pipeline is a done deal. It is a joint venture between European gas companies and the Russian state-owned Gazprom and will transport natural gas into the European Union. It is projected to bring $3.2 billion to Russia annually. 

For Putin, it is an opportunity to expand his influence in Europe.

Gold continues to suffer

In Friday’s trading session, gold traded at $1790 and settled at $1781. 

Analysts expect a decline for gold towards $1773. Anything below that level will target $1765 and $1756 dollars. 

The general trend for the commodity is sideways bearish.

In the absence of relevant US economic data, the gold price will closely follow broader market sentiment and the dollar’s dynamics. This week, the main event risk remains the US Nonfarm Payrolls which are due on Friday.

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