The price of Brent exceeded $120 per barrel

The price of oil on Tuesday exceeded the level of $120 per barrel. Traders continue to assess the situation with supply and demand in the global fuel market.

The cost of August Brent futures is $120.16 per barrel. The price of WTI oil futures rose to $119.20 per barrel.

As it became known, the Saudi national oil company Saudi Aramco intends to raise prices for all grades of exported oil for the countries of Asia, Northwest Europe and the Mediterranean with delivery in July. As a result, the cost of the Arab Light grade will increase by $2.1 per barrel, and it will cost $6.5 more than a basket of oil from Oman and Dubai. 

The decision of the OPEC+ ministers to increase the quota for oil production in July and August by 648 thousand barrels per day instead of the previously planned increase by 432 thousand barrels per day has an additional impact on market dynamics.

This decision did not impress market participants. The fact is that the alliance has not been able to reach production targets for several months, and this is unlikely to change after the quota increase.