US, WASHINGTON (ORDO NEWS) — Oil prices have gone ahead. From the lows of the end of April, growth was already 100%. On the eve of the cost of a barrel of brand Brent rose by more than 10%. Quotes came close to $ 32. West Texas WTI also confidently added in price and at the moment was trading more than $ 25.
The growth occurred against the backdrop of expectations of a decline in production under the OPEC + deal and an increase in demand as quarantine was lifted in Europe and other countries. It is worth noting that the discount of the nearest futures to the far – the so-called contango – was reduced to a minimum of a month. This indicates that concerns about oversupply are beginning to subside.
However, the rally may take a break. Experts say that very soon – on May 19 – contracts for American oil expire. Last month, expiration turned into a fall in prices below zero. Now the number of open positions is equivalent to 258 million barrels. Obviously, many of these positions will be closed so as not to go on delivery, and this will put pressure on prices.
Already closer to midnight, not the most optimistic data came from the American Petroleum Institute.
Stocks of petroleum and petroleum products in the United States have been growing for the 15th week in a row, with growth above expectations. More importantly, the oil reserves in Cushing have increased by more than 2 and a half million barrels, that is, the moment of maximum filling is getting closer. By the way, it is Cushing that supplies fuel under futures contracts, so the lack of storage space will also play a role.
We add that the state-owned company of Saudi Arabia, Saudi Aramco, has postponed the publication of export prices for the third month in a row, this time in June. This usually happens on the 5th of every month, but there are still no numbers.
Contact us: [email protected]