Monday, 8 June, oil prices increased on average by 1.2% against the OPEC agreement+ on further reduction of oil production.
At the opening of trading August futures for North sea Brent rose to $43,38 per barrel, American WTI – to $40,41. This is the maximum cost of raw materials since March 6 of this year.
At the time of publication of news Brent was trading at $42,8 per barrel (50 cents more expensive than at the close of the previous trading day). WTI reached $39,86 per barrel (+31 cents).
As noted by Reuters, the increase in oil prices caused by the reached June 6 agreements between the participants of the informal group OPEC+, which includes major oil producers, further reduction of oil production.
To reduce the level of global oil production by 15% OPEC+ announced April 10. The agreement was reached a month after the termination of the previous transaction that triggered a record drop in the price of raw materials. 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. On 30 March the price of Brent crude fell below $23 a barrel.
However, due to a record fall in demand for raw materials due to the pandemic caused by this coronavirus and stop the industry the price of oil continued to fall. So, on 20 April the price of may futures of WTI for the first time in American history was negative – 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 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. In mid-may, OPEC said that the oil crisis is behind us.