Last updated on December 8th, 2022 at 02:12 pm
Against the background of expectations from the OPEC + meeting, oil prices have risen to the maximum since the start of the oil crisis in March. Brent is trading above $ 40 a barrel, according to ICE London.
As of 8:30 Moscow time, the price of Brent is $ 40.12 (an increase of 1.39 per cent since the start of trading), and WTI – 37.63 (plus 2.23 per cent).
Oil prices fell to multi-year lows in early March, after OPEC countries and Russia did not agree on the action from April. Saudi Arabia insisted on tightening restrictions, and when the deal fell through, sharply increased production and gave buyers record discounts. As a result, storage facilities around the world were overcrowded, and supply exceeded demand collapsed due to coronavirus by tens of millions of barrels per day.
A new OPEC + agreement entered into force in May, during which 23 countries limited production to 9.7 million barrels. It suggested that since June, the restriction will weaken to 7.7 million barrels.
However, according to sources familiar with the negotiations, in June the parties may extend the maximum restrictions by one or three months. Russia, according to preliminary data, agreed with the proposal, but in which version is unknown.
Against this background, in the last week of May, the Russian Urals variety was trading with a record premium to the Brent reference brand – in the Mediterranean, it reached $ 2.8, the highest since 1990, and in northwestern Europe – $ 1.55.