the price of “black gold” standard grades in the course of today’s trading down significantly on the backdrop of concerns about the increasing number of coronavirus infection in the United States and China and the possibility of a second wave of the pandemic.
as of 8:15 GMT, August futures for North sea petroleum mix Brent fell $1,08 to the previous close to $37,65 per barrel, the July futures on West Texas crude fell by $1.44 to $34,82 per barrel, reports “Finmarket”.
As noted by a senior risk Manager IR “Algo Capital” Vitaly mangos, the negative role played by “fear of the development of a new wave of coronavirus in Western countries”. According to him, on the world oil market there has been a “clear deterioration of moods”. Early as Thursday “in the second half of the day the futures for Brent crude slipped below the nearest significant price level of $40 per barrel and firmly fixed to the said mark,” says the review expert.
However, the analyst specifies information and analytical center “Alpari” Vladislav Antonov, “the position of buyers after the price rise of 169% from $15,90 remain strong.” “Monday is expected to consolidate in the range of $37,00-of 39.85 per barrel”, — the expert predicts.
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 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. Besides, Saudi Arathe Wii announced their intention 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.
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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