the price of “black gold” standard grades in the course of trading day on Monday demonstrated mixed dynamics in anticipation of the OPEC meeting and decision on the quantity of further production cuts.
By 13:34 GMT August futures for North sea petroleum mix of Brent rose by 0.11% to the previous close to $37,88 per barrel, the July futures for West Texas WTI fell by 0.93% to $of 35.16 per barrel, according to PRIME.
As noted by leading analyst FxPro Alexander kuptsikevich, June 4 to be held a new meeting of OPEC+. “It is expected that it will discuss the possibility of extending the current severe restrictions for another 2 months, because demand is recovering less than expected. Russia has agreed to participate in these discussions, but its position is not yet clear. Saudi Arabia continues to pursue a policy of high oil prices. Russia is likely to support proposals to reduce, watching the sluggish demand for energy in Europe and not as fast as expected recovery in China,” says the review expert.
At the same time, says the head of analytical Department AMarkets Artem Deev, last week, “market participants almost completely ignored the growth of oil reserves in USA” and “the growth of tension in relations between the US and China”.
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 (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). As once the 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.
Stories about how you tried to get help from the Russian state in terms of coronaries and what came of it, email it to COVIDemail@example.com