Oil market: why did the collapse go to the rally?

US, WASHINGTON (ORDO NEWS) — In the oil market – rally. Traders, having forgotten about all the problems, push quotes up. The price of the Brent mixture already exceeds $ 28, although a week ago it was $ 16.

The global economy is attempting to quarantine. The market hopes that the demand for fuel will grow. In addition, on May 1, the OPEC + agreement came into force, oil production in the world began to decline.

Another catalyst for the growth of commodity quotes was data from the US Department of Energy. They showed much less-than-expected growth in stocks at the US cushion in Cushing. Bidders took this as a signal of the beginning of a recovery in consumption.

Nevertheless, the US oil industry is still experiencing serious problems. One of the pioneers of the shale sector – the Chesopik company – is already preparing to launch bankruptcy proceedings, and there can be many of them.

But, despite the rather gloomy prospects, in Texas, it seems, quotas for production will not be introduced. Today, the Railroad Commission, which is the regulator of the state’s oil industry, will hold its third meeting on this issue, but the chances of a decision to reduce production are close to zero.

The last supporter of such a measure said on the eve that the issue is no longer relevant. Moreover, the commission did not even make the necessary calculations and did not assess the possible impact of such a measure on the economy.

It is worth saying about the Russian market. For him, more expensive oil is an absolute plus.

Although the stock indices and the ruble suffered serious losses since the opening, at the end of the day they were able to win back most of them. Paired with the dollar, the Russian currency lost only 45 kopecks. and fixed below the level of 75 rubles., Together with the euro, the losses amounted to 15 kopecks at all, and the quote was 81.60.

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