11:23 - 14.04.2020

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April 14, Fineko/abc.az. Oil prices are rising on Tuesday as the market continues to evaluate the OPEC+ agreement on oil production cuts by record 9.7 million bpd between May and June. The U.S., Brazil and Canada are expected to add about 3.7 million barrels to the decline, as production in these countries decreases amid falling oil prices.

Traders are trying to understand to what extent the production restriction will be able to compensate for the drop in demand in the context of the coronavirus pandemic.

By 9:05 am on the London ICE Futures Exchange the Brent crude futures for June rose in price by $0.26 (0.82%) to $32.00 per barrel.

Following the trading on 13 April on the ICE Futures Exchange the price for June’s Brent oil futures increased by $0.26 (0.83%) up to $31.74 per barrel.

By 9:05 am, on the New York Mercantile Exchange (NYMEX) the WTI futures for May rose by $0.22 (0.98%) up to $22.63 per barrel.

At the end of trading on 13 April on the NYMEX Exchange, May’s WTI oil futures fell by $0.35 (1.54%) to $22.41 per barrel.

The OPEC+ deal was a forced response by oil-producing countries to a drop in demand as a result of the COVID-19 coronavirus pandemic. A sharp decline in traffic flows and the suspension of businesses led to a reduction in global oil demand by about 30% and a drop in prices to lows for the past 18 years.