US, WASHINGTON (ORDO NEWS) — Prices for WTI American oil continue to fall, according to trading data.
So, as of 11:01, the June WTI futures are getting cheaper by 18.15%, to 10.46 dollars. At the same time, minutes earlier, they fell by 20.5%, to 10.13 dollars.
The cost of the North Sea mix of Brent brand with deliveries in July drops by 3.03%, to 22.37 dollars per barrel, in June – by 3.5%, to 19.32 dollars.
Investors pay attention to the growth of oil reserves and low demand for it due to the coronavirus pandemic, which continues to affect the global economy. According to the US Department of Energy , reserves at the country’s largest terminal in Cushing (Cushing) for the week from April 13 to 17 increased by 4.7 million barrels, to 59.7 million.
“This week, all attention will be paid to indicators of oil reserves and, in particular, in Cushing, the WTI brent oil delivery center. If we see stock growth similar to the last few weeks, then, probably, the full loading of the terminal in Cushing will be achieved in the first half May, which will keep bearish pressure on the market, “said ING analyst Warren Patterson.
The situation with oil prices
Oil quotes plummeted in early March amid a significant reduction in demand around the world due to the coronavirus pandemic, as well as after the collapse of the OPEC + deal, when its participants were unable to agree to either extend the agreement to reduce production or change its parameters. As a result, prices fell more than twice.
Quotes were later restored on the eve of a new OPEC + meeting. According to the results of the video conference on April 12, member countries of the organization agreed to reduce production by 9.7 million barrels per day in May – June, by 7.7 million in the second half of the year and 5.8 million further by the end of April 2022.
However, according to the International Energy Agency, the OPEC + agreement, which will begin on May 1, is not able to compensate for the drop in demand in the world, but may lead to the beginning of a reduction in inventories in the second half of the year amid an excess of raw materials.
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