US, WASHINGTON (ORDO NEWS) — In less than a day, the price of the European standard Brent, with which the price of the Russian Urals grade correlates, crossed three important marks for the first time from April 13-14 – $ 30, $ 31 and $ 32 per barrel.
Oil prices began to rise since April 28. Brent began to rise in price on April 28 – from $ 22.7 per barrel for the contracts closest to execution. On Monday May 1, the European standard was already worth $ 26.4, and by Tuesday May 5 in the evening its price exceeded $ 30, then $ 31, and in the morning trading on May 6, the Brent price reached $ 32 according to exchange data.
The closest West Texas Intermediate (WTI) oil contracts, the American benchmark, are also growing. If by 12:00 Moscow time on Tuesday May 5, the price of the WTI benchmark increased by 9%, or $ 1.6, to $ 22.13 per barrel, then in the morning trading it reached $ 25.6.
The growth is accompanied by intraday declines, but analysts expect Brent prices to rise to $ 35 in the coming days.
The Russian Ministry of Energy estimated an excess of oil at 10 million barrels per day on the world market. At the same time, oil prices have doubled since the countries concluded the agreement on April 12 to reduce production. It is not obvious that all 32 countries participating in the agreement will fulfill their obligations, said today Deputy Head of the RF Ministry of Energy Pavel Sorokin.
“We know that in a number of countries there is a large presence of international companies that have more than 50% of production. But we expect everyone to make every effort to implement this,” the minister explained.
According to Sorokin on the online site of Roscongressa, the filled global oil storage facilities will begin to reduce their reserves in the III quarter of 2020. Now prices are rising more from the easing of quarantine restrictions in the largest economies in the world – Europe, USA, China.
Business and production begin to work, land and sea transport links are restored, which will cause an increase in demand for fuel. Hedge funds and investment fund managers have become the largest buyers of petroleum product contracts for the fifth consecutive week ending April 28, in anticipation of rising oil demand after the worst oil market in its history.
Swiss bank UBS said that easing quarantine restrictions will help to balance the supply and demand on the oil market in Q3 and increase the price of oil. According to UBS, the price of Brent oil will increase by the end of 2020 to $ 43, and by mid-2021 – to $ 55 per barrel.
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