the price of “black gold” standard grades in the course of trading day on Monday continues to decline and the negative trend has intensified in anticipation of the OPEC+, and on fears around the spread of coronavirus in the world.
K 13:31 GMT September futures for North sea petroleum mix Brent fell by 1.46% to $of 42.61 per barrel for the August futures on West Texas crude fell by 1.82% to $39,81 for the barrel. On Monday morning, the price decline did not exceed 1%, reports PRIME.
As noted by head of the analytical Department AMarkets Artem Deev, “an important event for the oil market will be the next OPEC meeting+, which will take place this week”. “The participants of the energy Covenant will hold a conference call on Wednesday, July 15. It is expected that the meeting may be decided to reduce the volume of compulsory reduction of production”, — said in the review of the expert.
the Director of the Academy of management Finance and investment Arseniy Dadashov warns that “in the event of a tightening of the terms of the agreement, Brent will have to wait for the decline, with high probability under $ 40 per barrel.”
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 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 States. The agreement will be valid for two years, from may 1, 2020 to 1 mAI 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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