US, WASHINGTON (ORDO NEWS) — Growth in transport and manufacturing activity in China, the second economy after the United States, easing quarantine in Europe sharply increased the price of oil on Monday. Supports prices and the OPEC + agreement. The rapid rise in oil prices is constrained by the growing political and economic restrictions between the United States and China.
A new benchmark for the market is $ 40 per barrel of Brent, the achievement of which will also ensure the pre-crisis level of the ruble exchange rate. The price difference between the Russian export grade Urals and Brent has disappeared in recent days, and at times Russian oil is trading more expensive.
On June 1, European Brent crude in London rose 0.74% to $ 38.12 per barrel, according to exchange data by 15:00 Moscow time. The price of the American benchmark West Texas Intermediate (WTI) has stabilized at $ 35.38 per barrel at the New York Mercantile Exchange (NYMEX). On the morning of June 1, oil was trading at Friday prices: Brent – at $ 37.83, WTI – at $ 35.5 per barrel, according to 10:00 Moscow time. Prices accelerated growth after the publication of statistics on China and new reports of reduced production.
Last Monday, trading ended at $ 36.12 per barrel of Brent and $ 33.7 per barrel of WTI.
OPEC and Russia come to a compromise decision on the timing and volume of reduction in oil production. The partners of the agreement are discussing an extension of production reduction by one to two months to further stabilize the market, said on Monday, June 1,Reuters are two sources in OPEC +.
On Monday, June 1, Caixin / Markit data for China were also published: in May, business activity in the manufacturing sector of the PRC unexpectedly increased due to the relaxation of the restrictions imposed on the fight against coronavirus.
The Purchasing Managers Index (PMI) in China’s manufacturing sector rose from April 49.4 to 50.7. Analysts polled by Reuters had forecast a growth of the index only to 49.6 points.
An indicator below 50 points reflects a decrease in activity, above – an increase in activity.
The volume of production last month grew at the highest rate since January 2011. Meanwhile, demand remained restrained, and new orders fell in May.
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