oil Prices during the trading day on Thursday demonstrated mixed dynamics in anticipation of the official weekly data of US Department of energy on stocks of raw materials.
By 13:30 GMT July futures for North sea petroleum mix of Brent rose by 1.16% to the previous close to $35 per barrel, the July futures for West Texas WTI fell by 1.46% to $of 32.34 per barrel, according to PRIME.
As the Director of the Academy of management Finance and investment Arseniy Dadashev, “overall, the mood of investors now look ambiguous”. “Overall, optimism is associated with expectations of recovery in the global economy makes itself felt. However, players are cautious with an eye on geopolitics, where the focus is on the confrontation between the US and China, which also holds back the bulls in the oil market”, — said in the review of the expert.
the head of the analysis of banks and money market IK “VELES Capital Yury Kravchenko specifies that the evening will be the traditional data on reserves and oil production in the United States. “If the actual data of the energy will be close to the forecast API (American petroleum Institute — ed.), the price of oil will be under pressure,” warns the expert.
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 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 namerenue 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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