the price of “black gold” standard grades in the course of trading day on Wednesday continued to decline, and the decline has accelerated ahead of the official weekly data of US Department of energy on oil reserves in the country.
K 13:48 GMT August futures for North sea petroleum mix Brent fell by 2.31% to the previous close to $accounting period by 40.23 per barrel, the July futures on West Texas crude fell by 2.82% to $37,84 per barrel, according to PRIME.
As noted by analyst IK “VELES the Capital” Elena Kozhuhova, the oil market demonstrates a negative attitude. “The coming oil futures Brent and WTI by mid-session in Russia remain in the red and losing about 2-2. 5% before the publication of the weekly US Department of energy reserves. Report of the American petroleum Institute does not allows us to expect surprises — the volume of reserves of “black gold” and distillates likely to significantly rise,” the review says an analyst.
for its part, the expert on the stock market “BCS” Igor Galaktionov indicates that last night was the published data from the American petroleum Institute (API). “For a week the oil reserves in the USA increased by 8.4 million barrels (up to 539,4 million). According to polls Reuters, analysts on average had expected a decline of 1.7 million barrels. Stocks at the terminal in Cushing fell by 2.3 million barrels. Gasoline inventories fell by 2.9 million barrels (forecast plus 71 thousand), distillate stocks rose 4.3 million barrels (prediction — plus 3 million). Statistics were negatively perceived by market participants” — emphasizes the analyst.
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 (11 March 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.
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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