the Average price of oil Brent will fall to $35 per barrel in the current year, follows from the review of the international rating Agency Moody’s.
“Despite recent price growth, we now assume an average Brent price of $35 per barrel this year and $45 per barrel in 2021” — leads TASS excerpts from the report Moody’s.
As explained in the Agency a deep recession in all major developed countries in 2020 and a sharp reduction in journeys in the world reduced the demand for oil in excess of previous assumptions and will not allow price to rise above the new forecast values.
Meanwhile, prices for “black gold” standard grades continue to decline. So, for 17:57 GMT August futures for North sea petroleum mix Brent fell by 0.61% to $40,55 per barrel, the July futures on West Texas crude fell by 0.63% to $37,95 per barrel. However, earlier in the day, these quotes fell to 2-2,5%, said PRIME.
for its part, the government of Saudi Arabia has called all the major oil producers that do not participate in the new deal OPEC+, to participate in the stabilization of the hydrocarbons market, the report says, according to the results of weekly meeting of the Cabinet of Ministers on the social network Twitter.
“the Government notes the efforts of the OPEC countries+ participation in the Declaration on cooperation and the call of the Ministerial meeting to the need of the contribution of all major oil producers outside the OPEC agreement+ in the stability of the oil market and what has been achieved, to achieve the desired balance and stability of world oil markets”, — stated in the message.
Recall that from 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 the coronavirusNoah 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.
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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