Oil prices on an inclined plane. April falls into May

Oil prices on the Fuel Stock Exchange in New York fall and continue the April discounts when they had the strongest decline at 2021 within a month and lost 16 percent. On the markets there are signals that the OPEC+ alliance countries will increase the supply of raw material – the brokers inform.

A barrel of West Texas Intermediate in delivery on VI costs at Nymex in New York 57.74 USD, below by 0.81 percent. And after losing in April as much as 16 percent

Brent on ICE on VI is valued at USD 60.63 for a barrel, after a 0.70 percent discount.

Investors assess the signals that the alliance of OPEC+countries, under the leadership of Saudi Arabia, may enter the long period of increased oil production through the countries from this group of raw material producers.

Saudi Arabia showed its allies from OPEC+ that the kingdom could survive the period of lower oil prices, and this strengthened the expectation markets that the Sauds are planning to refer OPEC+ towards another increase in oil supply.

This strengthens the fears in the markets that there will be a lot of raw material while the trade war of US President Donald Trump, which may cause a decrease in energy demand.

Next week, there will be a meeting of oil producers from OPEC+, and the cartel may then decide to accelerate even stronger increasing oil production.

Meanwhile, the International Monetary Fund reduces oil prices and estimates that in 2025 oil prices will fall to an average of USD 66.90 per barrel, while in October 2024 the fund estimated them by $ 6 higher.

As a reason for decreases in the prices of oil, IMF gives a solid increase in the supply of oil from outside the OPEC+ countries and muffled energy demand due to slowdown in the global economy.

Meanwhile, some of the largest American slate oil producers plan to limit the number of their drilling platforms by about 4 percent by the end of this year. – results from a survey conducted by Nabos Industries, a supplier of equipment for drilling platforms.

This is one of the first signals, like American drilling companies, react to a decrease in crude oil prices following Donald Trump, trade war.

CEO of NABOS Industies Tony Petrello is afraid that cuttings in the production of slate oil in the USA can be even greater.

“Considering negative moods in all markets, I expect it to be even worse,” said Petrello.

(PAP Biznes)

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