Photo: Eric Gay / AP
The price of us crude oil has set a historical record in may, 2020 on the demand recovery and record cuts in production. Within a month, the cost of raw materials soared by almost two times — to the highest level in the history of observations. This writes CNBC.
In the spring of 2020 oil prices in connection with the pandemic and coronavirus price war that followed the collapse of the deal, OPEC+, and have fallen short fell below zero. However, with the onset of may 1, a new deal cartel and non-EU States, the cost of raw materials began to recover.
WTI for may soared to 88 percent. Until then, the best month in the history of observations was considered as September 1990, when the U.S. grade rose by 44.6 percent. However, despite the historical record, WTI is still trading almost 50% below the maximum values January 2020, when it cost 65,65 dollar. At the end of trading on Friday, may 29, the oil cost of 35.49 dollar on the London exchange ICE.
Under the new deal OPEC+ the parties agreed to cut production in may to 9.7 million barrels. In the second half of the production decline should be 7.7 million barrels. In may, Saudi Arabia announced that it alone will reduce oil production by a million barrels a day.
Video, photo All from Russia.