the price of “black gold” standard grades in the course of trading Tuesday afternoon on the rise: traders evaluate signals of a decline in oil production, and the prospects of recovery in demand due to the gradual removal of quarantine restrictions.
14:26 GMT August futures for North sea petroleum mix of Brent rose by 2.14% to $40,57 per barrel, the July futures on West Texas crude fell by 1.97% to $37,85 per barrel, reports “Interfax”.
Earlier today the International energy Agency presented a report, from which it follows that the global supply of oil, according to IEA estimates, will be reduced by 7.2 million barrels per day this year, but will increase by 1.7 million barrels in 2021. With the projected growth in oil demand next year to 5.7 million barrels per day.
However, said the head of analytical Department Amarkets Artem Deev, “the growth of quotations is limited to the continuing fears of re-emergence of coronavirus infection”. “The Chinese government recently declared a state of emergency in some districts of Beijing after confirming a record number of new cases Covid-19”, — said in the review analyst.
for his part, Director of the Academy of management Finance and investment Arseniy Dadashov believes that “the sharp relief on the oil market came amid widespread recovery of demand for risk — on the eve of the American stock markets erased losses and come out, passing the baton to the Asian markets after the Federal reserve announced the launch of a programme of purchases of corporate bonds in the secondary market”.
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 INFecchi 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.
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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