the price of “black gold” standard grades in the course of trading on Friday afternoon continue to fall, and the decline was accelerated by concerns around the Outlook for the world economy and demand for raw materials in light of the continued spread of the coronavirus.
By 13:38 GMT September futures for North sea petroleum mix Brent fell by 0.74% to $43,04 per barrel for the August futures on West Texas crude fell by 0.71% to $of 40.45 per barrel. Morning quotes dropped only by 0.2-0.3%, according to PRIME.
As the expert on the stock market “BCS” Igor Galaktionov, “in the medium term, the situation (in the oil market — ed.) remains tense”. “Retaining the high pace of proliferation COVID-19 does not allow market participants to fully rely on the stable recovery of consumption. Because of the constant threat of increased restrictions in certain regions, including some U.S. States, forecasts for the recovery time are associated with high uncertainty”, the review says the analyst.
for his part, Director of the Academy of management Finance and investment Arseniy Dadashov says that “in the short term, Brent will probably continue to cling to the level of $ 43, whereas the chances of a break out level 44 dollar is small.” “The risks of loss psychological mark of $ 40 is also decreased, at least at the moment,” — says 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”. 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 SDtrees 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 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.
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