on the Evening of 27 April, the grade of WTI crude oil, a week ago, falling to otricatelnyh values, collapsed again. This time, however, not so critical: the June futures fell from $16 to $13 per barrel. But the price of Russian oil Urals has grown significantly and exceeded cost of a barrel of Brent North sea for more than $1. At the moment, for the “barrel” of the Russian varieties of “black gold” provide nearly $17, and its competitor is assessed at less than $16. Experts believe that this “success” of Russian oil temporary and accidental, once again proving the paradoxical nature of the current situation on the global market of “black gold”.
April 27, 2020 has been a fantastic event. The price of Russian oil Urals reached $17 per barrel (this is not a record) and exceeded the cost of North sea Brent by $1.05 per barrel (but this is a record)!
Moreover, such commercial contradictions taking place against the background of falling value of the us futures for WTI crude oil, which at today’s trading session fell by 27.5% to $12,55 a barrel. As suggested by the Director of the energy development Fund Sergey Pikin, despite some fluctuations, oil prices continue to arrive at extremely low levels. The impression that the current agreement on the limitation of production, with great difficulty between the countries of the OPEC, and independent members of the Alliance have affected the commodity market to a much lesser extent than a contract signed in 2016 and somewhiteguy prevent a collapse in prices for “black gold.”
Now in the oil market due to global quarantine, there has been an unprecedented decline in demand for fuel and, as a result, for crude oil from refineries. Counterparts the current situation was not only in recent years, but perhaps in history. In this case the owners of oil are forced to pay for the lease of oil storage and freight tankers. To reduce these costs, the owners of oil are ready to get rid of it literally at all times, which leads to falling prices, and sometimes even negative prices. In connection with this significant event on April 27: first, abnormal accumulation of oil tankers were observed off the coast of California. Then it was reported about tanker traffic jam in the narrow Singapore Bay. What’s happening: the oil due to oversupply and plummeting demand useless. A further fall in demand for raw materials, according to the International energy Agency, by the end of April will reach 29 million barrels per day. Recall that the accession on 1 may, the agreement OPEC+ proposes to remove from the market a maximum of 20 million barrels per day.
Therefore, at present punters prefer to sell the contracts with the nearest maturity, but purchase pokuPaty futures with the supply of raw materials at a later time.
“one-time exceeding of oil prices of a barrel of Urals over a barrel of Brent is not the victory of the Russian oil industry. A diagnostic of the oil world of the disease. When stop the coronavirus, the commodity market of the planet will recover. Then we will see the real clash of oil grades and, most likely, it will be not in favor of Russian Urals,” — said pikine.
