the price of “black gold” standard grades in the course of today’s trading continues to grow, with the August futures for North sea petroleum mix of Brent for the first time since March 6 of this year topped $42 per barrel.
So, as of 15:42 GMT the price of Brent crude oil increased by 6.2% to $42,48 per barrel. While WTI traded at $39,89 per barrel, which is 5.7% above the closing level of the previous trading session, reports TASS.
As noted by analyst IK “VELES the Capital” Elena Kozhuhova, the oil market shows a positive attitude. “The coming oil futures Brent and WTI by mid-session in Russia has accelerated the increase, and add about 2.5-3%, reaching highs since the beginning of March this year. The market received the news about the agreement of Nigeria and Iraq to adjust the discipline of the implementation of a quota to reduce oil production. In this regard, virtual meeting, OPEC+ is expected to take place this Saturday,” reads the review expert.
for his part, senior risk Manager IR “Algo Capital” Vitaly mangos indicates that “earlier it was rumored that the meeting of the Ministerial monitoring Committee of OPEC+ could take place this week”. “Yesterday came the message that this event could happen without prior warning. At the same time in mass media there was information that it may be postponed to 18 June,” notes the analyst.
However, adds the expert on the stock market “BCS” Igor Galaktionov, later it was reported by the Agency Bloomberg, according to which “progress has been made in talks with Iraq, which systematically does not fulfill his quota.”
According to the source TASS, both the Ministerial meeting of the OPEC countries, and then countries outside the organization, will be held on Saturday, June 6 — one day, not two, as was usual.
Recall, since 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%. 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. Nevertheless, assured the head of the Ministry of energy Alexander Novak, if necessarythe physical volumes involved in the transaction can take additional measures to stabilize the situation on the market.
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