Oil may drop sharply following the results of a week marked by a historic collapse
US, WASHINGTON (ORDO NEWS) — Oil prices rose Friday, but could finish in the red for the third week in a row, as production shutdowns do not have time to compensate for the drop in demand due to the coronavirus pandemic.
Futures for Brent crude oil rose 0.52% to $ 21.44 per barrel by 17:35 UTC, and on WTI – by 2.48% to $ 16.92 per barrel.
Despite this, prices may finish lowering the eighth of the last nine weeks. Since the beginning of the week, Brent has lost 27%, and WTI – about 14%.
On Monday, May WTI futures fell to minus $ 37.63 per barrel, while Brent then dropped to a low since 1999.
“After the price collapse earlier this week, which seemed to make every person on the planet aware of the problems in the oil market, several relevant announcements were made to stop active oil production,” JBC Energy said.
Continental Resources Inc, North Dakota’s largest oil producer, halted most of its state production and notified some customers that it wouldn’t supply raw materials, sources familiar with the situation said.
State officials said total production has already fallen by about 300,000 barrels per day.
Kuwait has already begun to reduce oil supplies to the world market, without waiting for the agreement between the exporting countries to enter into force, Kuwait’s state news agency KUNA reported citing the country’s oil minister.
The Azeri-Chirag-Guneshli Azerbaijan Oil Consortium (ACG), led by BP, plans to cut crude production by 75,000-80,000 barrels per day from May as part of the OPEC + global deal, three sources told Reuters.
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