Oil falls – players fear oversupply
Oil prices decline this morning due to uncertainty players regarding future demand prospects. As of 10:16 Brent fell 0.99% to $ 43.09, WTI - 1.17% to $ 39.80. The negative dynamics is associated with the transition of OPEC + to the second stage easing restrictions on the reduction of oil production. Recall that according to the current agreement, the level of restrictions is gradually decreasing - in August it is 7.7 million b / d instead of 9.7 million b / d, acting earlier. The Alliance intends to adhere to these quotas until end of the year. However, the transition to a new stage has raised concerns among investors that there may be an oversupply in the market - in addition to this circumstances, there is now a possibility that the United The states will decide to increase production, the agency leads Reuters opinion of the situation of the top manager of Nissan Securities Hiroyuki Kikukawa. This step on the part of the States is facilitated by current prices, rebounding from spring lows. With another hand, the situation with coronavirus continues to pose a threat to demand for oil.