World prices for “black gold” on Monday afternoon show a weak negative trend after the declarations of the representatives of the largest producers of raw materials — Saudi Arabia and Kuwait concerning the freezing of oil production.
As of 13:43 GMT the price of June futures for North sea petroleum mix of mark Brent fell by 0.23% to $38,58 per barrel. Price of the may futures for WTI crude oil fell by 0.46% to $36,62 per barrel, reports RIA “Novosti”.
Last Friday, the second crown Prince, Minister of defense of Saudi Arabia Mohammed bin Salman said that the country is willing to freeze oil production only under the condition that Iran and other major producers join the agreement. Iran, in turn, have repeatedly said that the country will begin to discuss the question about the freezing of oil production only after the production in the country will reach 4 million barrels a day. Currently, according to OPEC, it is at the level of 3.1 million barrels per day.
As analyst GK Forex Club Valery Polkhovsky, “after such news the prices are again under pressure.” “Until they find support in the area of 38 dollars per barrel, but there is no certainty that this mark will be able to stand up under the pressure of disappointed sellers. At the meeting on 17 April had been great hopes, which now are melting like smoke. Quotes Brent on this background may test $ 35 a barrel. However, expect that they will fall below 30 still premature. Lows 2016 still look emotional inflection. At such low values, problems arise not only from shale companies, but also traditional producing oil in hard-to-reach deposits,” — said in comments the expert.
Little support for the market provide comments to the acting Minister of oil of Kuwait, ANAS al-Saleh on Monday. Speaking to reporters, al-Saleh said that he hoped the coordination between OPEC and other oil-producing States, which, in his opinion, will help to stabilize oil prices.
