By Srinivas Chowdary Sunkara // petrobazaar // 13th April 2020.
Brent oil prices for June settlement slipped $1.36 or 4.14% to close at $31.48 on the London based ICE futures Europe exchange. U.S crude oil futures, WTI to be delivered in May tumbled $2.33 or 9.29% to close at $22.76 a barrel on NYMEX. In Shanghai, Crude oil main contract futures dropped by 10.2 Yuan or 3.4% to settle at 290 Yuan/barrel while MCX crude oil May futures closed higher at Rs.2080 on Thursday. Brent premium over WTI widened to $8.72 a barrel during the session.
The world crude oil price indexes moved down on speculation that any cuts would fail to offset a glut that keeps swelling as the pandemic spreads. Markets closed on Friday. Finally OPEC+ group clinched a deal to cut production for a quantity of 9.7 Mbpd. A group of 23 countries could come to an agreement after four days of marathon meetings. Initially, The group proposed to cut 10 Mbpd , equivalent to 10% of global supplies, which was opposed by Mexico on the amount of cuts it was being asked that hold on the agreement. After a compromise note by trump on behalf of Mexico, which agreed to cut 100,000 barrels per day, instead of initial allocation of 4,00,000 barrels per day. The 9.7 Mb production cut will start from May 1st till the end of June. The cuts will taper to 7.7 Mbpd from July through the end of 2020 and 5.8 Mbpd from Jan 2021 through April 2022. The group will meet on June 10th to review the pact. Today morning, Asian markets opened on a positive note that supported by unprecedented measures taken by the suppliers.
Good day to all.
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