the price of “black gold” standard grades in the course of trading day on Tuesday, boosted by growing confidence that oil-producing countries to meet the commitments on the reduction of its production, while demand for raw materials increases as the mitigation given in connection with the coronavirus restrictions.
For 13:39 GMT July futures for North sea petroleum mix of Brent rose by 1.27% to the previous close to $35,98 per barrel, the July futures on West Texas crude fell by 2.26% to $34 per barrel, according to PRIME.
As noted by analyst IK “VELES the Capital” Elena Kozhuhova, the oil market shows a “moderately positive attitude”. “The quotes keep the potential short-term growth that can be realized due to the trend towards a more limited supply and higher demand observed in may,” the review says an analyst.
the expert on the stock market “BCS” Igor Galaktionov States that “Brent crude konsolidiruyutsya around $34-37 per barrel,” and “short-term, this range looks fair.” “In the medium term fundamental and technical factors have to be strengthened. The recovery in demand and production cuts will support oil prices,” — said the analyst.
At the same time, warns the Director of the Academy of management Finance and investments Arseniy Dadashev, “the tense and uncertain situation in global financial markets in General will continue to restrain the manifestation of the bullish mood in the commodity segment, while over the world dominates the coronavirus”.
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 spreadthe issuance of a 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 on the market.
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