The price of oil reference marks continues to increase significantly in trading on Thursday after a collapse the day before.
The cost of may futures for Brent crude on London’s ICE Futures exchange at 12:47 to Kiev is $26,5 for barrel that on $1,62 (for 6.51%) higher than the price at the close of the previous session, Interfax reported.
Futures for WTI for April in electronic trading on the new York Mercantile exchange (NYMEX) by this time had risen by $2,43 (of 11.93%) to us $22.8 per barrel.
However, analysts believe that growth is likely to be temporary as the effect of falling demand due to the outbreak of coronavirus is amplified by the price war in the oil market, says CNBC.
“From April 1 to 4 million b/d (oil — ed.) can flood the market that may further bring down prices, experts say Jefferies. — If no one will take measures, none of the manufacturers will not benefit from the current situation”.
The American Senator-Republican Kevin Cramer on Wednesday urged U.S. President Donald trump to prohibit the import of oil from Russia, Saudi Arabia and other OPEC countries in response to actions that, in his words, “distort the energy markets”.
Wednesday, March 18, the Ministry of energy of Saudi Arabia has decreed that state-owned Saudi Aramco to hold oil supplies at the level of 12.3 million barrels a day, which should be reached in April, after the collapse of OPEC transactions+ within a few months. While Riyadh is not only “opened the tap”, dramatically increasing the offer on the market suffering from low demand due to the coronavirus, but also offered a substantial discount to the price of its oil to buyers from Europe, Asia and the USA.