the price of “black gold” standard grades in the course of trading day on Friday continue to rise, but growth has slowed as traders evaluated the results of the OPEC meeting+ that support expectations for the balance of supply and demand of oil.
K 13:23 GMT August futures for North sea petroleum mix of Brent rose by 2.24% to $42,44 per barrel, the July futures on West Texas crude fell by 2.83% to $39,94 per barrel. In the morning, oil rose in price by about 1%, and the day growth of quotations reached 3% or more, according to PRIME.
As noted by head of the analytical Department AMarkets Artem Deev, “the monitoring Committee of OPEC said on Thursday that pledges to reduce production in may was fulfilled by 87%”. “The group confirmed that the agreement on production cuts will be in effect until the end of July, and the country, not fulfilling the conditions in full, will have to compensate for the lack of reduction even greater reduction in July,” says the review expert.
However, he said, “many traders are confident that the percentage of execution of the agreement next month on the backdrop of the recent price growth could be even lower may.”
for his part, Director of the Academy of management Finance and investment Arseniy Dadashov says that “the limiting factor (for the stock — ed.) is an ambiguous attitude to risk, as investors continued to Express concern about the increasing number of infected with the coronavirus, which hinders the manifestation of optimism about recovery in the world economy”.
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 (11 March, it was an advertbut about the 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.
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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