For the first time since the beginning of March, quotations of Brent crude oil approached the level of $ 40 per barrel. As of 13:45 Kyiv time, the price was $ 39 42 cents, which is more than a dollar higher than the closing level of trading on June 1. The oil market is positively influenced by two factors.
This is a gradual reduction of restrictions associated with the COVID-19 pandemic and the revitalization of economic activity in most of the developed countries of the world, as well as the implementation of agreements on production cuts reached by the Organization of the Petroleum Exporting Countries (OPEC) and the cartel’s partner countries. including Russia, Kazakhstan and others. The OPEC + parties first agreed to cut oil production by a record 9.7 million barrels in May-June to offset the drop in global demand caused by the pandemic. Saudi Arabia and its Middle Eastern allies, which voluntarily went for even deeper production cuts than stipulated by the terms of the agreement, are now in favor of maintaining production quotas at current levels for an additional one to three months, Bloomberg reported, citing an informed source.
Oil prices closed higher for five consecutive weeks.