The futures of Petroleum They are benefiting from supply problems or fears of shortages around the world, causing their price to rise for three months.
The price of Brent barrel for delivery in May, rose 1.61% on Thursday (last business day of the week), to $87.48. Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery the same month, gained 2.23% to $83.17.
“The production and export prospects of Russia have gradually deteriorated due to Ukrainian drone attacks,” explained Tamas Varga, an analyst at PVM Energyto AFP.
Matt Smith, of the consulting firm Kplerstressed that “the geopolitical context and the desire of the OPEC+ to maintain their production cuts have supported crude oil prices.
Regarding the world supply of crude oil, Varga commented that there is “a strong consensus that the world reserves of Petroleum will be depleted throughout the year,” given that “demand is reaching unprecedented levels” and that “OPEC+ appears to be sticking to self-imposed production limitations, at least until June.”
The Organization of the Petroleum Exporting Countries and its allies in the OPEC+ alliance will hold a technical meeting of their Joint Ministerial Monitoring Committee.
In the run-up to that meeting, Russia announced this Friday that it will focus on reducing the production of Petroleum instead of exports in the second quarter to evenly spread production cuts with other OPEC+ members.
The deputy prime minister Alexander Novak He told reporters that Russian oil companies will reduce production in proportion to their share of the country’s total oil production.
Russia plans to gradually ease export cuts: in April, it will reduce production by an additional 350,000 bpd, with an export cut of 121,000 bpd. In May, the additional production cut will be 400,000 bpd and exports will be reduced by 71,000 bpd. In June, all additional cuts will come from oil production.
The world’s second largest exporter of Petroleum has cut its crude and fuel exports by a total of 500,000 bpd in the first quarter, in addition to its previous commitment to reduce production along with other members of the OPEC+ grouping.
The decision of Russia to further reduce oil production, not exports, was an unexpected measure. JP Morganwhich earlier this month called it a surprising shift in strategy, said that if it made good on promised cuts, Russian crude oil production should fall to 9 million barrels per day (bpd) in June, matching the output of Saudi Arabia. It currently produces about 9.5 million bpd of crude oil.
Industry sources told Reuters on Monday that the Russian government has ordered companies to reduce production of Petroleum in the second quarter to ensure that they meet a production target of 9 million barrels per day at the end of June, in line with their commitments to OPEC+.
Source: Ambito
