OPEC+ increases oil manufacture, which carries prices. Analysts started talking about the approach of excess.
Oil prices fell more than two dollars per barrel at the beginning of Asian trading on Monday, May 5. The autumn was due to OPEC+ intent even to accelerate the growth of oil production, Reuters reports.
It was noted that Brent cells were reduced by $ 2.04 per barrel, or by 3.33%, to $ 59.25 per barrel, while the American WTI brand oil reduced by $ 2.60%to $ 56.19 per barrel.
Both contracts reached the lowest level from April 9 to the opening of the trade on Monday after OPEC+ agreed to accelerate the growth of oil for the second month of the next, which increases production in June 411,000 barrels daily.
According to Reuters, the rise in production in June will lead to a total production increase for April, May and June to 960,000 barrels per day, 44% of the reduction of 2.2 million barrels per day that has come from 2022.
The agency also cited the words of the Evans founder on Energy Tim Evans, saying that OPEC+ decision on May 3 on the rise of quotas for making another 411,000 barrel daily for June reinforces the fact that global demand and demand balance and supply are moving toward excess.
Reuters, with reference to resources on OPEC+ write that the group can fully cancel their spontaneous abbreviations by the end of October if its members do not improve their compliance with their boot quotas.
Remember that last month the oil price has fallen for more than three years. In general, in April, Brent lost 15%in price, and WTI – 17%.
As reported, Russia has significantly reduced expectations for oil prices in 2025. Each dollar, reduced by oil prices, costs the Russian Federation budget of nearly 160 billion in revenue rubles per year.
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Source: korrespondent
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