the price of “black gold” standard grades in the course of trading on Wednesday afternoon continue to fall, but the pace of decline has slowed as investors await the official statistics on oil reserves in the United States after the American petroleum Institute (API) on the growth rate to a new record.
K 13:54 GMT August futures for North sea petroleum mix of Brent crude fell by 1.15% to $40,49 per barrel, the July futures on West Texas crude fell by 1.49% to $37,81 per barrel. Morning oil became cheaper on average by 2-2. 5%, reports PRIME.
As noted by analyst IK “VELES the Capital” Elena Kozhuhova, “oil, according to API rose by 3.9 million barrels, while petroleum products — slightly more than 5 million barrels.”
the Director of the Academy of management Finance and investment Arseniy Dadashev said that “at the moment the sites there is a fading demand for risk, investors moved into a more cautious mode on fears of a second wave of the pandemic due to the growth in the number of new cases in the United States and China.” “So, if negative moods during the day, Brent is in danger of again losing the $ 40 per barrel, a clear breakdown of which quotations are not yet able to confirm” — said in the review of the expert.
we also Recall that since the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. The negative situation caused by a whole complex of factors: a General overproduction of raw materials, a sharp drop in demand due to the rapid spread of coronavirus infection COVID-19 (March 11, was declared a pandemic) and concerns about its impact on the global economy and the collapse of the deal, OPEC+ (officially from April 1, but in fact, after fruitless negotiations of the countries-oil producers at a meeting on March 6 in Vienna). Just last circumstance became triggerum to the collapse in oil prices. Moreover, Saudi Arabia announced plans to increase production and lower oil prices. Later, the desire to lower the prices declared Iraq, Kuwait, UAE and Nigeria.
For the first quarter of 2020, the price of Brent crude fell by 65.6%, while WTI rose by 66.5%. And at the end of March the cost of June futures on Brent fell below $22 per barrel (to $of 21.72), that is, to at least March 2002, and the may futures for WTI to us $20.1.
on April 12 OPEC countries+ finally agreed on a new deal, joined by 23 States. The agreement will be valid for two years, from may 1, 2020 to may 1, 2022-th. In may—June this year, the production cuts will amount to 9.7 million barrels per day (from October 2018), then — until the end of 2020 — 8 million barrels, and 6 million by the end of April 2022. While Russia and Saudi Arabia base count will be 11 million barrels per day (of the Russian Federation in the first 2 months will reduce production at 2.5 million barrels per day). New business OPEC+ was a forced reaction of oil producing countries on the situation in the market and pressure from the United States. Overall, however, it does not cover the volume decline in world demand for the same in the market have accumulated huge reserves of raw materials. Nevertheless, assured the head of the Ministry of energy Alexander Novak, if necessary, the parties to the transaction can take additional measures to stabilize the situation on the market.
on June 6, the member countries of OPEC+ extended on a month — until the end of July — the period of validity of the agreement to reduce oil production to 9.7 million barrels per day.
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