Cheaper oil, but Brent held above $43 a barrel

the price of “black gold” standard grades in the course of today’s trading falls amid cautious sentiment in the market.

as of 8:31 GMT, the September futures for North sea petroleum mix Brent fell $0.17 to the previous close to its $43.2 per barrel in August futures on West Texas crude fell by $0.09 to $40,66 per barrel, reports “Finmarket”.

As noted by a senior risk Manager IR “Algo Capital” Vitaly Manzhos, “among the important news of the past day, pay attention to the message that China’s GDP at the end of the 2nd quarter increased by 3.2% compared to the same period last year.” “This nourishes the hope of a quick global recovery after the recent “coronavirus” recession. At the same time, the weekly number of initial claims for unemployment benefits in the United States amounted to 1.3 million Before the economic downturn, this figure was maintained in the range of 200-250 thousand So its current values remain abnormally high,” — said in the review analyst.

the expert on the stock market “BCS” Igor Galaktionov points out that “in the medium term, the situation (in the oil market — ed.) remains tense”. “Retaining the high pace of proliferation COVID-19 does not allow market participants to fully rely on the stable recovery of consumption. Because of the constant threat of increased restrictions in certain regions, including some U.S. States, forecasts for the recovery time are associated with high uncertainty” — emphasizes the analyst.

for its part, the financial expert CEX.IO Broker Alexander Janyk recalls that yesterday “oil retreated from a four-month high after OPEC + has confirmed it will increase production next month”. “Russia has already started a little buildVAT volumes, and in July, daily production can be of 8.62 million barrels a day. Nevertheless, the quotations of “black gold” are close to the local highs at $43,4″ — says the expert.

In General, predicts senior analyst “Alpari Eurasia” Vadim Iosub, “the likely daily range for Brent crude oil will make $42.9 to 43.8 per barrel.”

we also Add that since the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. A negative situation was 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).

However, on April 12 OPEC+ 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. 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 is not blocked volumes decline in global demand, besides on the market have accumulated huge reserves of raw materials.

At the meeting 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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