the price of “black gold” standard grades in the course of trading day on Friday continue to rise, and growth accelerated as the recovery after a sharp fall the day before.
By 14:25 GMT, the September futures for North sea petroleum mix of Brent rose by 0.91% to $43,33 per barrel, September futures on West Texas crude fell 0.9 percent to $40,28 per barrel, reports “Finmarket”.
Quotes are encouraged by the hopes of traders to the new stimulus by the US authorities after the publication of data on a record reduction of the country’s GDP in the II quarter of 2020 (32.9% in annual terms).
As the Director of the Academy of management Finance and investment Arseniy Dadashev, “in a broader perspective the risks of falling prices persist, causing further spread of the coronavirus in the world, which continues to threaten the prospects of recovery in demand, especially in light of the easing of restrictions on OPEC production+, which takes effect tomorrow.”
for his part, analyst IK “VELES the Capital” Elena Kozhuhova States that “at the end of the next July futures for Brent oil increased by 4.5% and settled above $ 43, while WTI increased by 2%, having won a $ 40”.
the expert indicates that in August, “the oil market will be loosened quota restrictions on production cuts, which, however, needs to be at least partially offset by the stricter discipline of a number of countries”. “Anyway, the price is already quite difficult to keep steady growth without significant positive factors, but at the same time, until good reasons for no sales, buyers are also in no hurry to leave the market”, — said in the review analyst.
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 youbeen called 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.
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.