Oil prices drop, but Brent remains above $43 a barrel

the price of “black gold” standard grades in the course of today’s trading down after yesterday’s growth on data from the US Department of energy on stocks and the decision on the transaction OPEC+.

as of 8:17 GMT, the September futures for North sea petroleum mix Brent fell $0,28 to the previous close to $43,51 per barrel for the August futures on West Texas crude fell by $0.34 to $40,86 per barrel, reports “Finmarket”.

As noted by a senior risk Manager IR “Algo Capital” Vitaly mangos yesterday “the participants of the Ministerial monitoring Committee in the format of OPEC+ coordinated easing from August 1 to the total limit level of oil production by 2 million barrels a day to 7.7 million barrels a day.” “This decision was motivated by the incipient improvement in the global balance of demand for liquid hydrocarbons and their production,” the review says an analyst.

the expert on the stock market “BCS” Igor Galaktionov indicates that the published data of the US Department of energy showed a drop of the oil reserves in the country at 7.5 million barrels per day compared to analyst expectations of 2.2 million barrels. “The dynamics of stocks traditionally regarded as one of the indicators of market demand, so that the drop formally indicates a good pace of recovery in consumption. At the same time it partly can be explained by the significant drop in imports, which last week amounted to 1.8 million barrels per day to 5.6 million barrels per day. From this we can assume that the positive impact of statistics on the market may have short-term character” — does not preclude the analyst.

overall, total senior analyst “Alpari Eurasia” Vadim Iosub, “the likely daily range for Brent oil is $43,2-43,9 per barrel.”

we also Recall that since the beginning of this year on the global oil market swept nothow many 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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