Oil prices break monthly record
Cost of the Brent crude for July delivery rose to US$33 per barrel for the first time since April 13. This is evidenced by trading on the London ICE exchange. Meanwhile, the price of the WTI rose up to US$30. These are the record figures for the oil for the month.
Experts associate the revival in the oil market with the agreements of the OPEC+ member countries signed on April 12, when it was decided to reduce hydrocarbon production by almost 10 million barrels per day in May and June, by almost 8 million in the second half of the year and 5.8 million by the end of April 2022. The decision of several countries including Saudi Arabia to voluntarily further reduce production also positively affected prices.
The agreement of the largest oil producing countries was preceded by a real price collapse in the oil market that was caused by the coronavirus pandemic and a drop in demand for hydrocarbons.