Oil price reaches a new record

Published on: 08-Jun-2020
Category: Trading
Last updated: 08-Jun-2020

Oil price reaches a new record

The members of the Organization for Petroleum Exporting Countries (Opec) have decided to extend their oil production cut. This has fueled the price of oil as it has risen in recent weeks and the market seems to be stabilizing.

The decision of the Opec countries and the expanded Opec + have led to the highest oil price since the beginning of March. The price of a barrel of Brent North Sea rose three percent on Monday morning, reaching $ 43.41 per barrel. It remains to be hoped that the oil price will continue its recent recovery. For about two months when oil prices have bottomed out, the value of a barrel of Brent has increased by almost 170 percent. The price dropped from $ 60 in February to down to $ 16 in April.

The US light oil WTI was able to continue its triumphal march of the past few days on Monday. The price rose about two percent to $ 40.44 a barrel. American oil fared even worse in April than European oil. The price of a barrel of WTI had dropped to minus $ 37. Now the price has risen by 14 percent in the past week alone.

On Saturday, the Opec participants and their cooperation partners decided to throttle ten million barrels a day for another month. Previously, the production volume had been set at 9.7 million barrels per day for May and June.

The oil price is also benefiting from the increased demand from China. Last month, the People's Republic imported 11.3 million barrels a day, which can increase production and refining runs.



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