For the second day in a row, oil prices continue to fall, as there are fears on the exchange because restrictions on the extraction of raw materials will cease to be effective next month.
This was reported by Reuters.
For example, in New York, futures fell to $ 39 per barrel after the decline.
The decrease is due to the fact that the market froze in anticipation of the meeting of oil exporting countries, which will be held on Wednesday, July 15. It will decide the fate of the transaction, which ensured a reduction in oil production and stabilized the supply and demand for the resource. In addition, the situation is due to tensions between the United States and China around the South China Sea.
“An increase in supplies from OPEC + would have hit the global economy, which is still far from the level of activity preceding viruses, and a number of indicators in the US indicate a slowdown in recovery over the past few weeks,” Reuters writes.
As News Front previously reported, oil prices collapsed due to the coronavirus pandemic and the ensuing reduction in demand. The situation was aggravated by the collapse of the OPEC + deal. The crisis dealt an unprecedented blow to American oil producers. Work in the shale segment was virtually unprofitable. So, if the price of Brent crude oil fell to 20-year lows, then the American WTI reached negative values.
In April, oil-producing countries nevertheless entered into an agreement under OPEC +, obliging them to reduce resource production to 9.7 million barrels per day.