Photo: Angus Mordant / Reuters
Us oil companies prepare to increase production of shale oil that will be a blow for the market is still recovering from her ordeal in the spring of 2020 collapse. This writes Reuters, citing market participants.
Oil prices fell in the year 2020 against the background of lower demand due to pandemic coronavirus and the collapse of the first deal OPEC+ Russia and Saudi Arabia. Later the cartel and non-it countries have managed to negotiate a restoration agreement, but the resulting market excess of cheap oil and the due to it a shortage of places to store it continued to exert pressure on prices. As a result, in April the price of raw materials in the short term fell to negative values.
Because of the low prices medium and small producers of shale oil in the United States was on the verge of bankruptcy. For most mining unprofitable when the cost of raw materials is below $ 40 per barrel. However, with the approach of oil to the price cut in June, the American company again becomes profitable to extract raw materials, although the development of new wells and speech does not go.
According to Reuters, by the end of June manufacturers in the U.S. will increase production of oil shale up to 500 thousand barrels per day. A quarter of the total reduction, which had to go to the United States because of the collapse of prices. “Due to the rapid growth of production in the United States the world’s leading oil producers — Russia and Saudi Arabia — will be harder to persuade allies to continue to adhere to adopted within the framework of OPEC+ agreements on record production cuts,” writes the Agency.
Informed analysts IHS, Markit warned that the stability in the oil market will again be under threat as soon as raw material prices reached the level of 40 dollars per barrel because of the return of the American shale producers, who did not take commitments on cuts within OPEC+. After that the countries of the cartel and non-oil powers the question arises whether to continue to cut production to maintain oil prices.
The cost of benchmark Brent in June broke the mark in 40 dollars for barrel. August futures for delivery of raw materials Jun 18, rose above 41 dollars. American WTI crude oil in June rose to 39.6 per barrel. In the course of trading on the London exchange ICE the June 18 price of the July contract reached 38.5 dollar.
Video, photo All from Russia.