the Global oil market could balance out in June—July of this year due to production cuts in OPEC, other producing countries, as well as the recovery of demand. This forecast energy Minister Alexander Novak announced the source of “Interfax”.
As the Minister noted, the oil demand in may is starting to improve and he’s already 20% higher than in April.
Meanwhile, prices for “black gold” standard grades in the course of trading on Monday evening to continue its moderate increase, due to signs of further production cuts in the U.S. with the continued recovery of demand.
as of 17:41 GMT July futures for North sea petroleum mix of Brent rose $0,13 to the previous close to $35,26 per barrel, the July futures on West Texas crude fell $0.2 to $of 33.45 per barrel, reports “Finmarket”.
Earlier it was reported that the number of active oil and gas rigs in the U.S. declined for the 11th consecutive week, dropping to the lowest in history of tracking this data since 1940-ies.
Add that Bloomberg called home lords of the world prices for oil. They will soon be traders to store the fuel in standing at the shores around the world in tankers.
As emphasized by the publication, ordinarily, traders and mining companies prefer tank storage on land, but now almost all of them are overcrowded, and higher costs for storage in tankers compensated by the possibility of rapid delivery to the consumer, said Lenta.ru.
Bloomberg reports that in recent weeks many tankers full of oil moored off the coast of the United States, China, European countries and South Africa. The latter is attractive to traders due to storage of oil in there safer than in other African countries where the incidence of piracy.
we also Recall that since the beginning of this year on the global oil market rode several waves 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. 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 in the market.
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