the Price of Russian Urals oil blend at some sites in Northwest Europe fell to 16.2 per barrel, which was a negative record since 1999. However, experts do not exclude that it not a limit. And in any case, such low oil prices persist for a long period
bashta / DepositPhotos When the price fell below $25 per barrel, the Central Bank started to carry out additional interventions by selling foreign currency from its reserves (forI support the ruble). Last week, the Central Bank held daily such intervention in more than 13 billion rubles.
Akishin Vyacheslav / Moscow-Live.ru
the Price of Russian Urals oil blend at some sites in Northwest Europe fell to 16.2 per barrel, which was a negative record since 1999. However, experts do not exclude that it not a limit. And in any case, such low oil prices will persist for a long period.
for the last week of Urals fell by 25%. At the same time increased the Russian brand discount to Brent to nearly $ 5 per barrel. Previously the difference between Urals and Brent ranged from 2 to 4 dollars per barrel.
Mixture Urals – grade Russian oil obtained by mixing the system of trunk pipelines of different types of “black gold” – a heavy sour crude oil of Urals and the Volga region and light oil from Western Siberia. Are mainly exported to Europe. The price of Urals attached budget rule that updated the Federal budget and the national welfare Fund (NWF). In 2020, the Federal budget has received funds from the calculation of the price of Urals 42.4 dollar per barrel.
When the price fell below $25 per barrel, the Central Bank started to carry out additional interventions by selling foreign currency from its reserves (to support the ruble). Last week, the Central Bank held daily such intervention in more than 13 billion rubles.
In the US oil is nothing worth: it can take from stores and manufacturers will pay
against the background of falling oil prices the Russian ruble weakened against the U.S. dollar and the Euro. So, the dollar during trading on the Moscow exchange is at the level of 80.1 ruble (+1.6 percent), and the Euro – ruble 88.7 (+1.1 percent).
According to experts, the dynamics of the commodity market was affected by increased fears of falling demand, a further decline in the may crude oil futures may continue. In the absence of kafir any positive news they will continue to move in the range of $20-24 per barrel.
according to RBC, these low oil prices can last a long time. The price of sea parties of Urals declined over the week on the background information about the increase of shipments of oil from Russian ports in April, almost 13% relative to March. Supply growth is expected with the beginning of the season repairs at Russian refineries as well as the completion of the transaction OPEC+.
“market Participants do not exclude a long period of low oil prices due to the reduction of oil refining. The demand for many petroleum products in the world declined sharply due to a significant decline in global economic activity due to pandemic coronavirus. The expiration of the transaction OPEC+ only aggravated the situation,” said the Argus.
the Physical oil market is experiencing “a catastrophic loss of demand,” wrote on March 29, Bloomberg. Storage tanks on land are crowded, forcing traders to place oil on supertankers at sea; refinery suspended because demand for their products there. In many regions of the world oil is sold for less than $10/barrel. and in some isolated areas has a negative price (the suppliers have to pay extra to have them taken oil).
In April 2020, the projected fall in world demand for oil is 20% lower than in April 2019.