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Quotes of Brent and WTI are down on concerns over demand

Quotes of Brent and WTI are down on concerns over demand

the price of “black gold” standard grades in the course of trading day on Thursday, down on concerns due to the fact that the spread of coronavirus infection COVID-19 will slow down the recovery of demand for this raw material.

By 13:25 Moscow time, October futures of North sea petroleum mix Brent fell by 1.16% to $43,58 per barrel, September futures on West Texas crude fell by 1.48% to $40,68 per barrel, according to PRIME.

As the Director of the Academy of management Finance and investment Arseniy Dadashev, “the absence of a more confident bullish momentum on the market, even if there are theoretically favorable factors indicate the willingness of traders to switch to sales in the implementation of risk factors.” “Thus, the probability of a return of the quotes above the level of $ 45 at this stage is low,” says the review expert.

the economist “BCS Premier” Anton Pokatovich indicates that “the continuing growth in the number of infections with coronavirus in the world and a new surge in tensions between the US and China remain the key negative factors that concern investors in the global markets.”

we also Recall that since the beginning of this year on the global oil market rode several 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 don 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.

15 July, the meeting of the Ministerial monitoring Committee (JMMC), which is composed of representatives of the countries participating in the agreement OPEC+ coordinated easing from August 1, restrictions on oil production (about 2 million barrels per day) — mined before the imposition of restrictions on the volume will be reduced not by 9.7 million, only 7.7 million barrels per day.

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