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2020-04-17 14:55:00

OIL PRICE: ABOVE $28 YET

OIL PRICE: ABOVE $28 YET

REUTERS - APRIL 17, 2020 - Oil prices were mixed on Friday as news of President Donald Trump’s plans to ease the U.S. coronavirus lockdown to get the American economy moving again were quickly overshadowed by China’s worst quarterly economic contraction on record.

Brent rose by 50 cents, or 1.8%, to $28.32 a barrel by 0954 GMT. However, U.S. crude CLc1 for May delivery tumbled by $1.27, or 6.4%, to $18.60 and below the level required for many producers to cover their costs.

The extent of the U.S. crude decline was attributable to the imminent expiry of the May contract, on April 21, and fast-filling crude storage. The more active June contract was up 29 cents, or 1.1%, at $25.82.

"The market knows that U.S. crude stocks will fill very rapidly ... as refinery runs continue to be cut tremendously," said Bjornar Tonhaugen, head of oil markets at Rystad Energy.

The hobbling of China's economy, meanwhile, was highlighted by data showing that GDP shrank 6.8% year on year in the first three months of this year, the first such decline since quarterly records began in 1992.

That data was released after President Trump laid out a three-stage process for ending U.S. lockdowns.

“The enthusiasm about U.S. President Trump’s intention to end the country’s lockdown seems to be dying down as traders realise that a full return of the economy will not come overnight,” Tonhaugen said.

Brent rose more than $1 earlier in the session, also boosted by a report detailing encouraging partial data from trials of U.S. company Gilead Sciences’ (GILD.O) experimental drug remdesivir in severe COVID-19 patients.

Both oil benchmarks are heading for a second consecutive week of losses, with U.S. oil prices around 18-year lows.

China's daily crude oil throughput in March sank to a 15-month low, with state refiners maintaining deep output cuts, but there are some signs of recovery as the country begins to ease coronavirus containment measures.

"If more of the global economy enacts plans to reopen and restores some sense of normality, that could help oil prices find a firmer floor in May, aided by the OPEC+ supply cuts kicking in," said Han Tan, market analyst at FXTM.

The Organization of the Petroleum Exporting Countries (OPEC) and producers including Russia, a grouping known as OPEC+, last weekend agreed on production cuts of nearly 10 million bpd after an earlier oil supply pact collapsed.

ConocoPhillips (COP.N) on Thursday said that it will reduce planned North American output by 225,000 bpd, the largest cut so far by a major shale oil producer to deal with the unprecedented drop in demand.

“This highlights that the market will see meaningful cuts from outside the OPEC+ group without the need for mandated cuts,” ING bank said in a note on Friday.

“Instead, market forces will do the job, with the low-price environment forcing producers to cut back.”

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Earlier:

OIL PRICE: ABOVE $28 YET
2020, April, 16, 14:20:00
OIL PRICE: ABOVE $28 ANEW
Brent was down 19 cents, or 0.7%, at $27.50 a barrel, WTI was up 7 cents, or 0.4%, at $19.94.
OIL PRICE: ABOVE $28 YET
2020, April, 16, 14:15:00
СНИЖЕНИЕ ОБЪЕМОВ ДОБЫЧИ: 15 - 20 МБД
Таким образом, в первые месяцы соглашения страны-производители могут снизить суточную добычу на 15-20 млн барр/с.
OIL PRICE: ABOVE $28 YET
2020, April, 15, 14:05:00
OIL PRICE: ABOVE $28
Brent fell $1.19, or 4%, to $28.41 a barrel, WTI slid 45 cents, or 2.2%, to $19.66.
OIL PRICE: ABOVE $28 YET
2020, April, 15, 14:00:00
OPEC+ STABILIZE OIL MARKET
The deal calls on OPEC, Russia and nine other allies to cut 9.7 million b/d of crude production in May and June, ramping down to 7.7 million b/d for the second half of 2020, and then 5.8 million b/d for all of 2021 through April 2022.
OIL PRICE: ABOVE $28 YET
2020, April, 14, 15:05:00
OIL PRICE: ABOVE $31 AGAIN
Brent fell 8 cents, or 0.3%, to $31.66 a barrel, WTI was down 36 cents, or 1.6%, at $22.05
OIL PRICE: ABOVE $28 YET
2020, April, 14, 15:00:00
СОКРАЩЕНИЕ ПРОИЗВОДСТВА НЕФТИ 15 - 20 МБД
"США, Канада, Норвегия и другие страны-производители нефти исходя из тех заявлений, которые сделали министры энергетики других стран, их общее сокращение с мая по июнь может составить от 15 до 20 млн баррелей в сутки", - сообщил глава Минэнерго России.
OIL PRICE: ABOVE $28 YET
2020, April, 13, 11:40:00
ОПЕК+ : СОКРАЩЕНИЕ ДОБЫЧИ 10 МБД
«Все сошлись во мнении о сокращении добычи на 10 млн барр/с странами ОПЕК и не-ОПЕК на май и июнь. В течение следующего полугодия мы частично восстановим добычу до сокращения в 8 млн б/c. Это соглашение будет действовать два года, на 2021 год параметры в соглашении заложены в 6 млн б/с», - сказал глава Минэнерго России.
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Tags: OIL, PRICE, BRENT, WTI