Oil prices moved up again

US, WASHINGTON (ORDO NEWS) — World oil prices returned to growth after the morning rise gave way to a minus.

As of 16:05 UTC, June futures for WTI crude oil are rising 6.37%, to $ 20.04 per barrel. In the morning, the figure reached $ 20.45 per barrel.

The price of July futures for the North Sea Brent mix is growing at 1.4%, to $ 26.85 per barrel.

On May 1, a new OPEC + agreement entered into force, which the mining countries agreed on April 12. So, in May – June, production should decrease by 9.7 million barrels per day, by 7.7 million in the second half of the year and by 5.8 million by the end of April 2022.

The starting point for the reduction was taken in October 2018, but for Russia and Saudi Arabia, the base was the volume of 11 million barrels per day, from which there is a decrease of 23, 18 and 14%, respectively.

At the same time, experts note that the volume of production decline may not be enough given the demand that has declined due to the pandemic; the decline is estimated at about 30 million barrels per day.

Analysts drew attention to media reports that Iraq began to reduce production at fields in the Basra region.

“Finally, production cuts have begun. Prices are still extremely low, and there will likely be extreme volatility in the next two weeks,” OANDA brokerage Craig Erlam quoted Reuters.

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