Oil prices rose on Friday and may record a weekly gain for the third week in a row amid efforts by leading producers to limit production amid concerns about the pace of economic recovery. Both benchmarks tanked 1% on disappointing unemployment claims data in the US which indicated a rise in initial claims despite 75% cuts in unemployment benefits.
OPEC and partners have called on countries that have exceeded oil production quotas as part of a restrictive deal to increase cuts in August-September amid fears of slowing recovery of consumption. However, the group noted that demand will likely reach pre-crisis levels by the end of the year.
Some OPEC + members need to cut production by an additional 2.31 million barrels per day to compensate for overproduction, according to an internal OPEC + document.
The OPEC report also says that the cartel is considering an alternative scenario of developments in the market in the event of a second wave of the coronavirus pandemic. OPEC+ warns it may be longer and stronger in Europe, India, China, and the United States.
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