Oil is cheaper because of the pandemic and production growth in the United States

Нефть дешевеет из-за пандемии и роста добычи в США

“Black gold” has started to become cheaper

Removed quarantine restrictions can go back, and once again oil will not what to do, afraid market analysts.

The world prices for oil reference marks continues to fall on data on the increase in the incidence of coronavirus in the world and information about growth of stocks of fuel in the United States for the third consecutive week. This according to the auction the morning of Thursday, June 25.

So, the August Brent crude on London’s ICE Futures exchange fell $0,45 (1,12%) to $39,86 per barrel. In the previous session, Brent fell by $2,32 (5,4%) to $of 40.31 per barrel.

The cost of the futures on WTI for August on the electronic session on the new York Mercantile exchange (NYMEX) fell $0.38 (1,00%) to $37,63 per barrel. On Wednesday, the contract fell $2.36 in (5,9%) to $38,01 per barrel.

Now the spread between the current contracts for Brent and WTI of $2.23 in favor of Brent.

“Black gold” is cheaper because of the growth in the number of infections COVID-19 in several us States, including California, Texas and Florida.

“There are fears that removed restrictions might come back. In addition, again, the question arises about the prospects for oil demand,” – quoted by Interfax analyst at Tyche Capital Advisors Tariq Zahir.

“If a pandemic will trigger a second wave of restrictive measures, storage facilities may not be able to hold untapped oil and gas”, – noted in the review Rystad Energy.

Earlier the who said the pandemic coronavirus has not yet reached its peak, and its effects can last for decades.

In turn, the US Department of energy announced that the country’s oil reserves rose at the end of the third week in a row by 1.4 million barrels. Experts polled by S&P Global Platts, predicted the decrease in reserves of 100 thousand barrels.

Also it became known yesterday that oil production in the US increased by 500 thousand barrels a day (b/d) – up to 11 million b/d. This was the first time and three months.

korrespondent.net