The organization of countries – exporters of oil with “cautious optimism,” believes that the worst phase of the oil crisis caused by the pandemic coronavirus, was left behind. About it to Agency Bloomberg said the OPEC Secretary General Mohammed Barkindo.
He expressed the hope that the second half of the year oil market stabiliziruemost on the background of global economic recovery and serious reduction of oil production by OPEC countries+.
The OPEC Secretary General added that the situation in April was “extraordinary”, but the members of the cartel “took the challenge” and stabilized the market.
On 20 April the price of may futures WTI for the first time in the history became negative (fall in the value of contracts with maturity in June and later it was negligible) – for 20 APR quotations fell to minus $40 per barrel. It also triggered the collapse of prices on the European spot market (prisoners in this market contracts are executed immediately). The estimated price of the Russian benchmark Urals oil fell to minus $3 per barrel of North sea benchmark Brent crude to minus us $3.5.
The rapid decline in oil prices was due to a record drop in demand for hydrocarbons because of the pandemic coronavirus, and the ensuing economic crisis and fears of traders that storage facilities will soon be filled.
The level to record fall of oil quotations returned on 30 April, on the eve of the entry into force of the agreement OPEC+ about record reduction in oil production.