Futures contracts for North sea Brent increased in price to $42.5 per barrel. On the spot market quotations of Russian Urals confidently overcame the level of $42 per barrel. Positive expectations regarding the extension of the transaction OPEC+ to limit production for the next two months helping to raise. However, radical changes of prices until the end of the year, participants do not wait, expecting to overcome the level of $50 a barrel only next year.Quotations of basic grades of European oil steadily climbs above $42 per barrel. According to Reuters, the spot market price of Russian oil Urals reached $42,3–42,7 per barrel (depending on delivery region), exceeding the values of the previous day’s closing on 7%. Quotations of June futures contract for the supply of Brent crude reached $42,5 per barrel, more than 4% above closing of Thursday. Three months ago, after leading oil producers failed to agree the deal, OPEC+ on the restriction of production, fuel prices fell by 20%. By April, prices fell in four to five times relative to the start of March, to $10 per barrel.The current round of price recovery is also associated with the transaction to limit oil production, but with a positive rating. OPEC meeting+ scheduled for Saturday is expected to discuss the fulfillment of the terms of the transaction. At the previous meeting it was agreed joint efforts to remove from the market of 9.7 million barrels of oil during may and June. According to analysts “the alpha-the capital” Artem Kopylov, most likely, Russia and Saudi Arabia (the main producers in the framework of the deal. “Kommersant”) “will agree not to increase production in July,” but “the Kingdom, still dissatisfied with the current oil prices, will try to persuade partners to extend the current reduced until the end of August”. According to him, if that happens, “the market will receive a positive signal”. In addition, according to the economist “BCS Premier” Anton Pokatovich, the General market mood has also swung in favor of optimism, in particular, after “increase in the ECB’s emergency asset purchase program twice”. On the eve of the European regulator took the decision to expand the asset purchase program to €1.35 trillion from the previous €750 million however, the positive situation on the oil market is poorly reflected in the Russian currency. The dollar is currently near $ 68,6 RUB/$, where he fell on Wednesday. This value is close to the low since March 6. However, further movement of the market participants still do not expect. Moreover, the most positive factors are already priced in. Oil prices have recovered to $40 a barrel at a time “as the growth of economic activity in the world seems to be very moderate,” he points out.The mood in growth of oil prices in the second six��AI so far has been muted. And in many ways they also depend on the pace of global economic recovery, analysts said. According to Mr. Pokatovich, “the raw material can lose value as the risky asset on the background of the probable tensions between the US and China.” In addition, he notes that inventory levels of crude oil remains elevated, which “would limit the growth in oil prices.” Artem Kopylov notes, and the risks that “not all participants in the transaction will fulfill the assumed duties.” Rapid recovery in oil prices may relax some of the participants that will lead to violations of agreements, which will adversely affect the oil market, experts say. Mr. Kopylov considers that Brent prices will not rise above $45 per barrel in the near future, “even if the parties fail to agree on the extension of the cuts for August”. The evaluation of Anton Pokatovich, prices will remain under $35-45 per barrel by the end of the year. A sustainable recovery to $50-55 per barrel could be realized not before the second half of the year 2021, he said.Division finansowania is the largest-ever production cuts to netikette next
Austin Weather Forecast
30.8 ° C
Latest News & Headlines
In the summer he wanted to go on strike with AS Roma, now he has won the Europa League with Eintracht Frankfurt and, to...