Members of the world oil market is waiting for news about the date of the OPEC meeting+ that can pass this week. This opinion was expressed analyst IK “VELES the Capital” Elena Kozhuhova.
She says that on Monday “the coming oil futures (standard grades) Brent and WTI by mid-session in Russia did not show uniform dynamics and change less than 0.5%”. “In the market after the prices of new tops waiting for news about the date of the OPEC meeting+ that can pass this week”, — stated in the review analyst.
the expert on the stock market “BCS” Dmitry Babin recalls that “on Friday evening, the price of oil has made a breakthrough, updating 3-month high”. “Today in the early afternoon he was again rewritten, and then prices had started to consolidate. Now Brent is adding 1.2 percent at $38,2. Friday finished traded July contract for Brent now and the closest was August, which at the previous session was more expensive in July of approximately $1.5” — indicates the analyst.
moreover, the ITI Capital experts do not exclude that “in the market of Brent oil will remain bullish state of the market, and the benchmark expected to rise to $40,62 per barrel.” “The key trigger of growth would be the transfer of OPEC meeting+ at an earlier period of time, June 4, is June 9-10. The cartel and its allies are considering extending the current agreement for one to three months, said one of the delegates. Concluded before the agreement includes the easing of restrictions since July,” — says analysts.
we Add 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 spreadinganemia 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 was the trigger 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.
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