Photo: depositphotos/carloscastilla
Leading expert of the national energy security Fund Igor Yushkov told, what factors will affect the price of oil in the near future.
According to him, the oil consumption is reduced due to the introduction in different countries of restrictive measures due to the spread of coronavirus infection. He explained that the reason the temporary suspension of air traffic.
“against the backdrop of such a situation and there is no certainty about the increase in production. And from April 1 cease to operate production quotas. Don’t know how long Saudi Arabia will actually increase the volume of production or not”, – quotes news Agency “national news service” the words Yushkov.
He said that if Saudi Arabia will massively raise production volumes, the prices will fall even more. According to the expert, traders are now starting to sell this futures, so the price falls further.
“a Lot will depend on how now will recover in China. How will fall the volume of production in the USA and what will be the volume of falling demand from the EU, because they have quarantine measures now in full swing. These factors will depend on the price of oil,” – said the expert.
in addition, Igor Yushkov called the critical price of $ 20 per barrel for Russia, but also noted that more important for the Russian economy, what will the average price of oil.
Earlier it was reported that the cost of oil brand WTI fell by 8.52%, reaching $ 19.98 USD. The price of the June gold futures on the mark Brent fell by 4.65%, to 26.6 per dollar.
Oil traders previously speculated that prices could fall to five dollars per barrel. Such cost may persist for several weeks and before the end of the year, traders believe.
Among the factors that have a negative impact on the global economy, in addition COVID-19, Russian energy Minister Alexander Novak called the drop in oil prices due to the failure of the transaction OPEC+.
Members the cartel failed to agree on reducing oil production by 1.5 million barrels a day until the end of 2024, Russia and Kazakhstan refused.
co-Owner of LUKOIL Leonid Fedun earlier said that the decision on the cancellation of the transaction by the irrational. According to him, the Russian daily will lose up to $ 150 million.
the Price of WTI crude oil fell below $ 20
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