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Weakens OPEC limits oil production

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 in July, has lost almost the entire price premium to Brent

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.

Novak called the priorities for the oil companies

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 .

The price of Brent crude declined to 43.23 per barrel

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.

The price of Brent crude oil fell to 43.52 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.

Novak called the world oil market stable

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 .

Putin has no plans of international contacts in OPEC , said Sands

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 announced the execution of the contract of OPEC

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.

Putin has no plans contacts with the leadership of Saudi Arabia

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.

The price of Brent crude dropped to 42.92 USD per barrel

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.

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