Oil prices continue to fall after the record record in the last five years increases the production of OPEC+countries. This caused the nervous reaction of the markets, and the Brent and WTI quotations pierced the psychological levels.
According to April 3, the participants of the OPEC+ Agreement decided to accelerate the cancellation of previously accepted restrictions in oil production. The eight fleet countries have agreed to increase the production from May by 411 thousand barrels per day. The total reduction, which was 2.2 million barrels per day, will be gradually abolished.
This solution has become the largest increase in oil production over the last five years. According to Western analysts, such a policy is aimed at stabilizing the market, but instead caused a sharp fall in prices.
On the ICE Futures London Exchange, June Futures for Brent oil fell to $ 69.64 per barrel, which is 7.08% below the previous session. The WTI oil on the New York Commodity Exchange (NYMEX) also fell-its value dropped to $ 66.17 per barrel, losing 7.73%.
Analysts note that such a sharp fall in quotations can affect the profitability of production in the US and other non -OPEC countries. Some experts warn of the possibility of further corrective movements in the market.
Against the backdrop of price reduction, oil companies look at their profitability forecasts. Some large players, including US oil oil producers, may have to reduce production if prices continue to decline.
However, OPEC+ countries are convinced that increasing demand in the second half of the year will help stabilize the market and restore prices to acceptable levels.
