the Main reason for the declines in the increasing pessimism about the pace of recovery in the global demand for oil and petroleum products. The increase of the news on the extension in July 2020, the maximum reduction of production at 9.7 million barrels per day by OPEC participants of the transaction was played out, and new positive information to the market is not received.
in addition, investors ‘ expectations were justified is minimal. The extension of the deal, OPEC+ current parameters for August yet is not even discussed, and the additional reduction of oil production, a total of 1.2 million barrels a day, which took over Saudi Arabia, the UAE and Kuwait, as it turned out, will be made only in June, with no further extension.
the Negative statistics last week, the United States provided. Crude oil inventories in the country rose by 5.85 million barrels, while the expected decline. Also increased gasoline inventories on 09 million barrels and distillates by 1.6 million barrels.
Also the negative market sentiment contributed to the deterioration of forecasts for the pace of recovery in the world’s largest economies, and the growing fears of a second wave epidemic of coronavirus in the autumn of this year.
