Oil prices tumbled on Wednesday, may 27, on news that Russia intends to increase oil production in July. About it writes Bloomberg.
Trading day before the benchmark Brent closed at a price above $ 36 per barrel for the first time since March 2020. But on Wednesday, the cost of raw materials began to decline. By 10:00 Moscow time on the July futures for Brent crude fell 2 percent from the closing level, to 35.44 per barrel. Contracts on the American WTI with delivery in July, 9:44 fell 1.8 per cent to 33.7 per dollar. On the eve of WTI has closed above 34 dollars for the first 11 weeks, the Agency said.
According to Bloomberg, Russia is not the only factor that negatively affected oil prices on Wednesday. The raw material is cheaper on the background of tensions in relations between the US and China. Washington has threatened Beijing’s tough measures in connection with events in Hong Kong.
Previously, the Agency, citing sources reported that Russia is going from July to begin to increase production of raw materials in accordance with the April transaction OPEC+. Within its framework, countries have agreed on a record reduction of 9.7 million barrels a day within two months. This agreement suggests that since mid-summer, the total quota will decrease to 8 million barrels per day. The next meeting of OPEC+ oil powers outside the cartel should take place within two weeks. Currently, its members are discussing to soften or tighten restrictions.
Video, photo All from Russia.