Quotes of Brent and WTI falling on concerns over demand

the price of “black gold” standard grades in the course of trading on Friday afternoon continue to fall, and the decline in prices has accelerated amid fears over the spread of coronavirus infection COVID-19.

By 13:17 GMT September futures for North sea petroleum mix Brent fell by 1.88% $42,33 per barrel for the August futures on West Texas crude fell by 1.92% to $39,87 per barrel. On Friday morning, prices fell on average by 1%, according to PRIME.

As noted by analyst IK “VELES the Capital” Elena Kozhuhova, the oil market is showing a “negative attitude”. “The coming oil futures Brent and WTI by mid-session in Russia has accelerated the decline and lose within 1.5%, korrektiruete from the June peaks (43.96 41.63 dollar and dollar). The market currently lacks strong growth drivers, which causes buyers to profit-taking,” the review says expert.

the head of the analytical Department AMarkets Artem Deev draws attention to the deterioration “of market sentiment due to the deterioration of the epidemiological situation in the world, representing a threat to world consumption of hydrocarbons”.

In General, adds the Director of the Academy of management Finance and investment Arseniy Dadashev, “from a technical point of view, Brent, who yesterday flirted with the mark of $ 43 is located slightly below this mark, but continues to aim the highs beyond”.

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 1 April, 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.

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