For 3 APR oil benchmark Brent crude on the London stock exchange rose by 16.3%. About this testify to the auction.
The cost of June futures on the close of Friday’s trading amounted to $of 34.83 per barrel, or $4,89 higher than at the close of trading on 2 April.
The increase in oil prices occurred against the background of the preliminary agreement of three largest oil producers – Saudi Arabia, Russia and the USA on the reduction of hydrocarbon production by 10-15 million barrels per day.
Be the first to this agreement the evening of April 2 was announced by the US President Donald trump. The next day this information was confirmed by the President of Russia Vladimir Putin. According to him, the reduction should occur from the level of oil production in the first quarter of this year.
Meanwhile, Putin has accused Saudi Arabia in the termination of the transaction “OPEC plus” that have provoked the most serious collapse in oil prices over the past decade. Minister of Saudi Arabia said that the Russian President is “completely devoid of truth”.
Details of the new agreement can be approved by 6 April, during a web conference of energy Ministers of the countries “OPEC plus”.
The fall in oil prices continues since the beginning of March. The main reason was that Russia and the Organization of countries – exporters of oil are unable to agree on new restrictions the level of oil production. By 9 March the price of Brent crude oil has fallen by 30% – up to $33 per barrel, the biggest daily drop since 1991, when the war began in the Persian Gulf. The evening of 18 March, the cost of Brent crude slumped to a 17-year low – $25,4 per barrel and 30 March futures traded at $18.
On the background of unsuccessful negotiations Saudi Arabia, according to sources Bloomberg, decided to “join the total price war” and increase production from 9 million to 12 million barrels per day. In addition, Riyadh has pushed Russian oil Urals on the European market, offering triple the supply of Arab Light grade with big discounts.
This led to the fact that, as of 31 March, the price of Urals dropped to the lowest level since 1999 – $13 per barrel. As noted by “Radio Liberty”, the Urals in Europe became cheaper fuel.
1 APR prices on the oil market began to rise amid expectationsthat Russia and Saudi Arabia will reduce production volumes.