Brent oil futures for delivery on Wednesday morning in February morning during trading fell to $ 48.69 per barrel.
According to the publication as of 8:17, the price of futures for Brent oil fell by 0.31%.
At the same time, the price of January futures for WTI oil fell to $ 45.46 per barrel, losing 0.31%.
Oil prices rose late last week after major producers agreed to continue to limit production to cope with demand affected by the coronavirus, but the compromise did not live up to expectations, writes Reuters. Thus, prices fell the day before, in particular, against the background of quarantine restrictions.
OPEC + countries, including Russia, agreed on December 3 to maintain the restrictions on oil production, which were in force since the spring of this year. However, with some easing – according to the new agreements, from the beginning of 2021 the restrictions will change: in January, the alliance will be able to increase oil production by 500 thousand barrels per day. The terms of the agreement will be reviewed monthly, the BBC reports.
It will be recalled that the world oil market experienced a “black Monday” on March 9 – the largest sharp drop in prices since 1991 with the start of the Gulf War. After that, there were several more price collapses in the oil market – against the background of the coronavirus situation and restrictions due to the pandemic in the world’s largest economies, leaving the market overwhelmed by a sharp decline in demand and excessive oil surplus.
On April 12, OPEC + member states, including Russia, agreed to reduce oil production in a pandemic.
Currently, the OPEC + production reduction agreement provides for a production limit of 7.7 million barrels per day. In the April OPEC + agreement, producers were offered to reduce production to 5.8 million barrels per day from the beginning of 2021 to the end of April 2022. However, the conditions changed at the meeting on December 3. OPEC + has confirmed the agreement to return 2 million barrels per day to the market, but the return should be gradual, taking into account the market situation.
