OPEC August 1 will begin to check the stability of the recovery of the oil market: the Alliance will move to the second stage started in may of the deal to reduce output, which is the easing of restrictions with unprecedented 9.7 million million barrels per day to 7.7 million.
It is expected that this phase will last until the end of the year and to avoid excessive overheating of the market. As reported by Minister of energy of Russia Alexander Novak, in July, the oil market was fairly balanced and was able to go in a shortage of supply due to transaction-OPEC and reduce oil production in several other countries.
Russian Urals crude oil are still traded in Northwest Europe at a premium to North sea Brent, however, it dropped to 0.3 per barrel on July 15-16 from the record level of the end of June 2.45 dollar. This was announced by the international price Agency Argus.
Urals crude oil, in contrast to the North sea, is considered heavy oil, which yields less light petroleum products such as gasoline. Light oil products are usually more expensive, however, relative prices may change. The spring of Russian oil has risen and is trading at a premium.
Companies make a decision on the execution of contracts for the supply of oil in connection with the increase in production by OPEC , but first it is important to provide the Russian market, told reporters energy Minister Alexander Novak.
"We have basically always increase in the summer goes to the domestic market. Of course, companies make decisions regarding the execution of their contracts, but it is important for us to ensure first and foremost the domestic market, it usually grows in the summer, so believe it. Approximately 400 thousand barrels increase," said he, answering the question of how much can go of oil in the domestic market, and how much for exports, after Russia will begin to increase production in the framework of the weakening of OPEC .
World oil prices on Friday morning are down, traders are concerned about the prospects for demand for raw materials on the background of the situation with COVID-19, according to the auction.
As at 7.54 GMT, the September futures price for North sea petroleum mix of mark Brent has fallen on 0,32% - to 43.23 per barrel. August futures for WTI crude oil became cheaper on 0,22% - to 40.66 per barrel.
World oil prices are down Thursday morning, as traders assess the prospects for the transaction of OPEC after the meeting of the Alliance this week, expecting to increase production, according to the auction.
As at 8.05 GMT, the September futures price for North sea petroleum mix of mark Brent fell by 0.62% to 43.52 USD per barrel. August futures for WTI crude oil became cheaper by 0.8% to 40.87 USD per barrel.
The oil market is balanced and stable enough in June, the decline in demand due to coronavirus was 10 million barrels per day to 25 million barrels per day in April, said the head of the energy Ministry of Russia Alexander Novak.
"We see that the market and demand is restored. If in April the decrease in demand was approximately 25 million barrels per day in the whole world, today this recovery has occurred to a greater extent, and in the month of June we observed a decrease in demand by about 10 million barrels," - said Novak at the press conference following the meeting of the Committee of Ministers on monitoring of OPEC .
Press Secretary of the President of Russia Dmitry Peskov said that President Vladimir Putin is not in the plans for international calls before the OPEC meeting .
As expected, the question of the parameters of the deal, OPEC in August will be decided this week. On 14 July a planned meeting of the technical Committee of experts of the OPEC (JTC), and on July 15 - Ministerial monitoring Committee (JMMC).
Mexico has fulfilled its part of the deal, OPEC intends to increase oil production, said the country's President, Andres Manuel Lopez Obrador.
"We have fulfilled our obligations to reduce production at 100 thousand barrels per day. This stage is completed, we'll build up manufacturing," the President said during the morning press conference.
Conversation the President of Russia Vladimir Putin meets with counterpart from Saudi Arabia on the eve of the OPEC meeting is not planned, reported the press Secretary of the head of state, Dmitry Peskov.
On July 14, scheduled meetings of the technical Committee of experts of the OPEC (JTC), and the Ministerial monitoring Committee (JMMC) - on July 15.
Oil prices on Tuesday morning correctional decline after rising during trading on Monday, according to the auction.
As at 7.42 GMT, the September futures price for North sea petroleum mix of mark Brent fell by 0.42% to 42.92 USD per barrel. August futures for WTI crude oil dropped by 0.37% to 40,48 USD per barrel.
The speaker of the Libyan Parliament akila Saleh said in an interview with RIA Novosti that he discussed during his visit to Moscow whether in Eastern Libya to dialogue with the national consensus Government (NTC), based in Tripoli, and whether to wait for the arrival in Russia of the commander of the Libyan national army (LNA) Khalifa the Haftarot. He also said, what are the prospects for the return of Libya to the agreements OPEC and OPEC , explained how the revenues should be shared from the Libyan oil, and appreciated the role of Russia, USA, Turkey and other powers in the North African country.
The ruble has significantly reduced the dollar and Euro amid falling oil prices.
American currency calculations "tomorrow" on 21:04 GMT rising 94 cents, to 71.5 ruble, the Euro by 1.04 ruble to 80,37 of the ruble, follows from the data of the Moscow exchange.
Uncertainty about oil demand in the world in the third quarter of this year increases the growth risk of a new wave of the spread of coronavirus, told RIA Novosti researcher on energy issues of the European analytical centre CEPS Irina Kustova.
Earlier, OPEC in its June report predicted that demand for oil in the world will decrease by 6.4 million barrels per day in the second half of the year compared with a decline of 11.9 million barrels per day in the first half of 2020.
The decline of the Russian economy this year will amount to 4.2%, with good development of the situation in the second half of the fall can be less than 3%, said in an interview with RIA Novosti General Director of rating Agency "Expert RA" Sergey Tishchenko.
It's optimistic forecasts, the Russian financial authorities. The official forecast of Ministry of economic development involves the reduction of Russia's GDP in 2020 to 5%. The Bank of Russia expects the economic downturn of the country in 2020 in the range of 4-6%. The head of the Central Bank Elvira Nabiullina said that does not rule out a decline of Russia's GDP in the second quarter is stronger than 8%.
The dollar by the end of the current year will fall to 66 rubles, with this exchange rate and the average annual price of oil in 50 dollars for barrel the budget deficit of Russia will be in 2020 at 5% of GDP, said in an interview with RIA Novosti General Director of rating Agency "Expert RA" Sergey Tishchenko.
The last time the dollar was trading around 66 rubles at the beginning of March this year. However, after the collapse of OPEC transactions and statements of a number of countries of the former Alliance on plans to increase production at rapidly falling demand due to the coronavirus began a steep dive in oil prices. The ruble is not stand the pressure and began to weaken: the value of the dollar in the second half of March has jumped to above 80 rubles.
The government of Saudi Arabia has called all the major oil producers that do not participate in the transaction of OPEC , to take part in the stabilization of the market of hydrocarbons, said the report on the results of the weekly meeting of the Cabinet of Ministers on the social network Twitter.
The Saudi government indicated that the last meeting of OPEC Ministers and the producer countries of OPEC reaffirmed "the continuing commitment of countries to the desire to achieve stability of the market in such a way that would meet everyone's interests and would guarantee security of supply for consumers."
The Iraqi state company State Oil Marketing Organization (SOMO) has asked some Asian buyers to refuse the supply of oil brand Basrah loading in June and July, says the Agency Bloomberg, citing sources familiar with the situation.
"SOMO asked the companies do not consider whether they have the ability not to accept certain goods in the framework of the contracts for these months," said sources.
The new oil Minister of Iraq Ihsan Abd al-Jabbar during a telephone conversation with Minister of energy of Saudi Arabia Abdulaziz bin Salman reiterated the commitment of the Baghdad agreements on the reduction of oil production during June-July and beyond, it is told in received RIA Novosti news Agency the statement a press-services of the Ministry of Iraq.
The Ministers discussed strengthening bilateral relations and cooperation in mutual interest to their fields.
The Saudi state company Saudi Aramco raised prices on oil supplies in July, reports Bloomberg referring to him with the price list of the company.
Previously, Saudi Aramco has postponed the announcement of the July prices for its oil until the resurrection, awaiting the outcome of OPEC meeting .
The solution to overcome the reduction of oil production reached in the framework of OPEC, will serve to further stabilize the market, says the Senator Oleg Morozov.
In April, OPEC agreed to cut oil production to 9.7 million barrels per day in may-June, 7.7 million in the second half of the year and 5.8 million next until the end of April 2022. Base count taken October 2018, but for Russia and Saudi Arabia taken 11 million barrels per day, from which by analogy with all is a decrease of 23%, 18% and 14% respectively. On Saturday, OPEC agreed to extend the current reduction of oil production to 9.7 million barrels per day by the end of July.
OPEC extended the reduction of oil production to 9.7 million barrels per day in July, said the head of Ministry Alexander Novak.
According to the Minister, the decision was made to strengthen the impact of the deal reached in mid-April.
Joint action by OPEC has allowed to avoid serious consequences of the significant drop in oil demand in history, said the Minister of energy of Russia Alexander Novak.
"I would like to Express my gratitude to all the participants of the Ministerial meeting of OPEC, held on 9 and 12 April this year, for the constructive decisions that have been taken for the joint action, which allowed us to avoid serious consequences today, the most significant in the history of the decline in demand on the world oil market", - said Novak.
OPEC decided to maintain the current level of oil production until the end of July, reported RIA Novosti a source in the organization.
"OPEC approved the extension of the reduction to 9.7 million barrels per day for a month," he said.
The meeting of OPEC on the fate of the deal, OPEC began in a videoconference, stream is on the website of the organization.
Energy Ministers of the OPEC countries and OPEC on Saturday to hold meeting where will be discussed the first results of the transaction, its national implementation and the further fate of the agreement to reduce oil production.
The country's agreement to reduce oil production by OPEC on Saturday will hold its first since the inception of the new arrangements Ministerial meeting, and although it was previously assumed that the correction transaction will be considered in December, 6 June, the Ministers are going to raise this issue in the framework of the planned conference.
Since early may, came into force a new agreement on the reduction of oil production by OPEC during the crisis due to pandemic coronavirus, lower oil prices and falling oil demand with more than 100 million barrels per day to 70-80 million barrels a day.
The increase in world oil prices accelerated to 3% on Friday afternoon in anticipation of Saturday's OPEC meeting and possible solutions to reduce production, according to the auction.
As at 13.46 GMT the price of August futures for North sea petroleum mix of mark Brent grew by 3% to 41.18 per barrel, the July futures for WTI - by 2.38%, to 38.3 per barrel. On the morning of Friday the rise in oil prices did not exceed 0.5%.
Meeting of the agreement to reduce oil production by OPEC will be held on Saturday, June 6, told RIA Novosti source in one of the delegations of the Alliance.
The source added that an official invitation for a meeting has not yet sent delegations.
The world prices for oil on Friday grow, investors are expecting new information about the dates of the meeting of the representatives of the countries of the OPEC deal , according to the auction.
As at 7.45 GMT the price of August futures for North sea petroleum mix of mark Brent has grown on 0,55% - to 40,21 per barrel. July futures on WTI rose in price on 0,24% - to 37.5 per barrel.
Moscow says the stabilization on the world markets of energy resources, the Minister of energy of Russia Alexander Novak is in constant contact for the development of the situation with their colleagues from other countries, said the press Secretary of the President Dmitry Peskov.
"In General, we observe a stabilization on the international energy markets. And again, Novak is in contact with its partners, all the rest of some announcements we do not believe it is now possible," he added.
Director for analysis of financial markets and macroeconomics UK "Alfa-Capital" Vladimir Bragin questioned the realism of the prognosis for growth of the dollar to 90 rubles, the opinion he expressed in an interview with RBC.
Previously, the Center for macroeconomic analysis and short-term forecasting (CMASF) published a forecast that the dollar may rise to 90 rubles in the case that the world will begin a second outbreak of the coronavirus and the authorities will again have to enter the appropriate constraints.
The head of VTB Andrey Kostin not surprised by the rapid recovery of the ruble, he believes that the dollar should cost no more than 70 rubles.
"No, because we always talked about the fact that our ruble to a certain extent undervalued. But the oil situation has really dealt a serious blow, but in General the Russian economy after all, has considerable reserve, and the macroeconomic indicators are unique," said Kostin in an interview to Business FM, answering a question, it is not surprising if his "rapid recovery of oil and especially of the ruble".
Iraq is committed to the agreement OPEC and in spite of the financial and technical problems have reached a "good percentage" of their obligations, is in contact with the Secretary General of OPEC and Ministers of the countries of the Alliance, said RIA Novosti the representative of the country's oil Ministry ASEM Jihad.
Oil prices moved Wednesday to lower amid doubts that the June OPEC meeting will take place. According to the Agency Bloomberg, Saudi Arabia and Russia warned the other members about what is planned for the beginning of June, the negotiations on the extension record cuts in production may not take place if a number of countries, including Iraq and Nigeria, do not give firm commitments to adhere to the restrictions on their deliveries.
The fall of the oil market in connection with the pandemic coronavirus infection had a negative impact on the oil industry of Equatorial Guinea, in particular, the country had to postpone plans to develop two oil projects from this year to 2021, said in an interview with RIA Novosti, the Minister of mines and hydrocarbons, Equatorial Guinea mbaga of Gabriel Obiang Lima.
"Like any producer of oil, this shock did not escape. But I think ours was less, given the size of the production, and the country. We made a couple of discoveries (oil reserves - ed.) in 2019, and our plan was to continue working on them this year to increase production. But with the current prices make sense to build it there. So it was decided to postpone these projects for 2021," he said.
The OPEC Secretariat to provide delegations with their assessment of the oil market that OPEC Alliance will be guided, making decision at the upcoming Ministerial meeting, but the worst period for oil has not yet passed, said in an interview with RIA Novosti, the Minister of mines and hydrocarbons, Equatorial Guinea mbaga of Gabriel Obiang Lima.
"I think what we are doing now that OPEC always does, we are monitoring what the impact is now on offer and on demand, and on prices. This monitoring lies in the area of responsibility of the Secretariat (OPEC – ed.). And the Secretariat had recently sent delegations of different assessment of the situation. On the basis of this assessment will be recommended to the Ministers (for the fate of the deal, OPEC - ed.)", - told the Minister about what discussions are now OPEC on the fate of the agreement on the reduction of oil production.
Countries which have concluded a deal OPEC and discuss two options for extending the reduction of oil production, reported RIA Novosti source in one of the delegations.
He said that the decision on the date of the next OPEC meeting is not yet adopted.
In the evening the ruble rises against dollar and Euro on the background of increasing oil prices.
The dollar calculations "tomorrow" at 20.50 MSK decreased by 34 kopecks and reached 68,78 of the ruble, Euro — by 15 kopecks, to the level 76.8 ruble, follows from the data of the Moscow exchange. Earlier Tuesday, the dollar and the Euro has updated the lows of March 6.
World oil prices on Tuesday morning are rising in the hope of extending the existing limitations on oil production by OPEC , according to the auction.
As of 7.49 GMT the price of August futures for North sea petroleum mix of mark Brent has grown on 0,86% - to 38,65 dollars per barrel. July futures on WTI rose in price by 0.56% to 35.64 percent.
The presidents of the United States and Russia Donald trump, and Vladimir Putin discussed arms control and the summit "the big seven", where trump was invited earlier by 4 additional countries, including Russia, said the White house spokesman Judd Deere.
"President trump and Putin discussed the ongoing efforts to combat the pandemic coronavirus and the opening of economies in the world," said Deere.
The presidents of Russia and USA Vladimir Putin and Donald trump, discussed during a telephone conversation the oil market and the OPEC agreement , stated that it seeks to restore demand and stabilize prices, said the press service of the Kremlin.
"Reviewed the situation on the world oil market in the context of the implementation of the agreement of OPEC . It was noted that this multilateral agreement reached with the active support of the presidents of Russia and the United States, leads to a gradual recovery in oil demand and stabilize prices", - stated in the message.
OPEC is considering extending the existing cuts oil production for one to three months, according to the Agency Bloomberg with reference to one of the delegates to the upcoming June meeting of OPEC .
"OPEC will discuss the extension of the Treaty on the reduction of oil production", - stated in the message.