the price of “black gold” standard grades in the course of trading day on Tuesday continue to rise, and growth has accelerated.
as of 11:38 GMT, the September futures for North sea oil Brent has risen 1.87% to $44,09, the August futures contract for West Texas mark WTI rose by 1.66% to $41,6 per barrel, reports TASS.
Oil prices rise following the increase in investors ‘ demand for risky assets in global markets. Positive news about testing of vaccines and the agreement on new stimulus measures in the EU has improved the mood of investors, says RBC.
However, the Director of the Academy of management Finance and investment Arseniy Dadashev, “the deterrent effect of the fears regarding the resumption of drilling activity American lancelike”.
“the Number of existing plants is still the lowest in the last 15 years, level, however, the fact that the oil managed to rise by 130% since the April lows and is currently trading just 30% lower than the maximum values, 2019, making investors preparing for the possible production growth in the United States. This can lead to the destruction of the fragile equilibrium in the market, which has been achieved in recent months”, — the expert warns.
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, membersthe ICA which became the 23 state. 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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