the price of “black gold” standard grades in the course of today’s trading continued to decline, and the fall accelerated with the morning values, and the cost of August futures for North sea petroleum mix of Brent for the first time since 3 June, tumbled below $39 a barrel.
According to 16:11 GMT the price of this grade fell by 6.6% to the previous close to $38,96 per barrel, reports TASS.
Meanwhile, the July futures on the West Texas mark WTI fell by 7.7% to $36,71 per barrel.
As noted by RBC, the oil market remains high volatility, resulting in quotes returned to levels of early June. Then the member countries of OPEC still has not come to an agreement on the extension of the restriction on production
the World oil market shows today a “negative attitude” and prices fall “due to global risk avoidance,” notes the analyst of “VELES the Capital” Elena Kozhuhova.
In her view, “the end of the week below will open to new horizons a short-term fall.”
Recall that from 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%. Andeat 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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