the price of “black gold” standard grades in the course of trading day on Thursday continue to show a negative trend in the data on stocks of raw materials in the United States, which rose to a historic high.
K 13:25 GMT August futures for North sea petroleum mix Brent fell by 2.56% to $40,66 per barrel, the July futures on West Texas crude fell 2.9% to $38,47 per barrel, according to PRIME.
As noted by head of the analytical Department Amarkets Artem Deev, “the pressure on the quotes continue to provide data on the change of oil reserves in the United States.” “The energy information administration on Wednesday reported that for the week ended 5 June, oil stocks rose by 5.7 million barrels. According to a poll of analysts S&P Global Platts had expected a decline of 3.2 million barrels. The day before the American petroleum Institute (API) reported an increase in reserves of 8.4 million barrels,” — said in the review analyst.
the expert on the stock market “BCS” Igor Galaktionov adds that “the overall demand for gasoline declined by 16% compared to last year.” “Thus, yesterday’s data from the EIA do not give substantial grounds for optimism. Demand remains weak and oil reserves continue to accumulate that will create a canopy with the supply side on the horizon of the year” — does not preclude the analyst.
for his part, Director of the Academy of management Finance and investment Arseniy Dadashov suggests that “Brent will probably stay in a defensive position, at least as long as investors digest the negative effect from the Federal reserve (the US Central Bank, which kept its base rate at former level, — ed.)”. “In the short term futures, it is important to hold above $ 40 per barrel to avoid a deeper correction,” — emphasizes the expert.
Remindm 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). 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 Minister of energy of the Russian Federation Alexander Novak, when necessary participants in the transaction may take additional measures to stabilize situation on the market.
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.
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