The effect of relaxation in the lockdown begins to appear on oil prices Due to ‘a consensus’ made in the international market, prices of crude oil have seen a heavy rolling on Tuesday.
The opinion is that ‘if large producing countries continue to cut oil production and most of the world’s major economies gradually ease the lockdowns that have been introduced to prevent the outbreak of the coronavirus epidemic, it is expected that in the coming days, both the price of crude oil and its demand will improve.’
In the coming days, some countries have also started stocking oil for consumption by planes and trains. The impact of this situation and prospects appeared on international crude oil prices on Tuesday morning.
West Texas Intermediate (WTI), which is considered the benchmark of US oil, has seen a rise of 3.2 percent in crude oil prices which has led to a gain of $ 1.06 per barrel and now a barrel price of $ 34.31. has gone.
West Texas Intermediate also did not release any rate due to the ‘Memorial Day’ holiday in the US on Monday.
The international benchmark Brent has also recorded a 1.7% rise in the price of crude oil. Here the price of oil has increased to $ 36.12 per barrel.
In fact, Saudi Arabia increased the global supply of oil in the month of April in violation of another OPEC oil supply agreement from Russia. After this, on 12 April, under the pressure of Trump, an agreement was signed between the world’s largest oil-producing countries under which it was decided to reduce oil production.
OPEC, Russia, and other allied oil-producing countries formed a group named OPEC+ for which these countries would cut their products which would be about 10% of the global production.
Daniel Hines, the senior strategist for Australia and New Zealand Banking Group, has said that “certainly the cuts made by OPEC + have had an impact and the effect is as you might expect”.
A meeting of OPEC + countries is to be held in early June to discuss how much production cuts should be continued to increase the price of oil.
Major producers of oil had agreed to cut May and June production under the previous agreement.
All producers want oil prices to be normal soon. The rate of oil at present is about 45 percent less than the rate earlier this year.
According to Daniel Hines, “The re-emergence of international economies has alleviated concerns about the oil futures market, which was too high up to two weeks from now because the uncertainties were too much and could not understand what would happen.”