Prices for American WTI crude oil continue to fall, according to trading data.
So, June WTI futures are falling by 18.15% to 10.46 dollars. At the same time, minutes earlier, they fell by 20.5% to $ 10.13.
The cost of the North Sea Brent blend for delivery in July falls by 3.03% to 22.37 dollars per barrel, in June-by 3.5% to 19.32 dollars.
Investors are paying attention to the growth of oil reserves and low demand for it due to the coronavirus pandemic, which continues to affect the world economy. According to the US Department of energy, stocks 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 the indicators of oil reserves and, in particular, in Cushing, the center for the delivery of WTI oil. If we see inventory growth similar to the last few weeks, full loading of the terminal at Cushing will likely be achieved in the first half of May, which will keep bearish pressure on the market,” said ING analyst Warren Patterson.
The situation with oil prices.
Oil prices fell sharply in early March on the background of 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 could not agree on an extension of the agreement to reduce production, or on changing its parameters. As a result, prices fell more than twice.
Later, the quotes were restored on the eve of a new OPEC + meeting. According to the results of a videoconference on April 12, the organization’s member countries 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 by 5.8 million further — until the end of April 2022.
However, according to the International Energy Agency, the agreement OPEC+, which will start to operate on May 1, is not able to compensate for falling demand in the world but can lead to the early reduction of reserves in the second half of the year amid a surplus of raw material.