the barrel of benchmark Brent crude, from which to calculate the discount for Russian oil grade Urals, trading at 25.9 dollars, that is quite far from the negative values. While WTI has Russian oil a very indirect relationship, competing with our product in the countries of the Asia-Pacific region (with a grade ESPO in the first place) and used for dilution of the sulfur grades (including the Urals) in Europe.
in addition, the collapse of the value of North American crude oils occurred only in contracts for the supply of “black gold” in may. Contracts WTI with delivery in June sold on the exchange at 21.8 USD per barrel. The drop in WTI, of course, pulls the other parameters, and Brent, too, but to talk about the global crisis is premature. Rather, it is more for the oil industry in the United States, it suffered only their product.
“It’s the panic caused by the filling of storage facilities and poor expectations for may. I think she deliberately broke up – it’s game inside the United States against trump. Remove its trump card – the economy”, – said the head of the national energy security Fund Konstantin Simonov. He said that in June contracts WTI prices are now above $ 20 per barrel. But the European market the current decline may be influenced because the Saudis will take the volume dropped us supplies. According to the expert, while the demand in the red at 25 million barrels, nothing good will. “I think Urals will be again tomorrow around 10 dollars per barrel”, – said Simonov.
energy Demand fell amid the expansion of the pandemic coronavirus in the world and the increasing production of “black gold after the failure of negotiations OPEC+ in early March. The excess supply of oil on the market is now estimated at 25 million barrels per day and filling storage exceeds 70 percent.
Members of OPEC+, and had joined other oil-producing countries have agreed on a new regulated oil production decline, the total volume of which is 15 million barrels in may-июне2020 year. But given the excess supply, this is not enough to stabilize the oil market.
