the price of “black gold” standard grades in the course of trading day on Tuesday showed multidirectional dynamics.
K 14:27 GMT September futures North sea petroleum mix of Brent rose 0.39% to $43,58 per barrel, September futures for West Texas WTI has fallen in price on 0,14% to $41,54 per barrel, reports “Finmarket”.
As the Director of the Academy of management Finance and investment Arseniy Dadashev, “downside risks on the market of “black gold” remains and can manifest itself in the near future”. “First, the situation of coronavirus is still poor, and in some countries resumed the quarantine restrictions, which is a direct threat to the recovery of demand, especially for gasoline. Second, since August starts on mitigation measures to reduce production as part of the deal, OPEC+”, — stated in the review of the expert.
in addition, says the head of analytical Department AMarkets Artem Deev, “investors fear a further deterioration of relations between the U.S. and China and growth in the number of new cases of coronavirus, which may significantly dampen the prospects of global economic recovery and demand for hydrocarbons”.
we also Add 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 April 1, 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 StatesTBA. 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.
15 July, the meeting of the Ministerial monitoring Committee (JMMC), which is composed of representatives of the countries participating in the agreement OPEC+ coordinated easing from August 1, restrictions on oil production (about 2 million barrels per day) — mined before the imposition of restrictions on the volume will be reduced not by 9.7 million, only 7.7 million barrels per day.