WTI oil jumps almost 30% after sharp falls with the tension between the US. USA And Iran and waits for production cuts

SÃO PAULO – After two very negative sessions and having operated at lows since 1999, the session is triggered by oil prices. The WTI contract maturing in June is up 27.48% to $ 14.75 a barrel, while brent has a more modest rise of 8.12%, but once again exceeds the $ 20 a barrel level at $ 20.90.

Some factors lead to this increase in oil, especially WTI, which saw its contract for May come to operate negative on the eve of maturity amid concerns about the lack of space for oil storage (see more by clicking here ).

The day before, by videoconference, several members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies (the so-called OPEC + group) analyzed the sharp drop in product prices.

According to an OPEC source at Reuters, it is “logical” to expect OPEC + to announce further production cuts.

According to estimates by Jim Burkhard of the IHS Markit, 17 million barrels per day may be withdrawn from the market considering the already announced cuts and other production suspensions, due to low prices, which do not allow operating margins. viable

Energy Aspects expects the impending closings in the United States to account for at least 1.3 million bpd, adding to the cuts already announced by the country this month.

OPEC + members will implement a production cut of 9.7 million barrels per day from May 1. Although the reduction is historic, it is not enough to offset the drop in demand, which is in the order of 30 million barrels per day due to the impact of the coronavirus.

Furthermore, the scenario of international tension also leads to an increase in merchandise. United States President Donald Trump said on Twitter that he ordered the Navy to bomb and destroy Iranian ships that threaten American ships. Iran is one of the largest oil producers.

A week ago, the Pentagon accused Tehran of carrying out “dangerous maneuvers” at sea, when, according to Washington, 11 Iranian speedboats sailed near US ships in the international waters of the Gulf at “high speed.”

In response, Tehran complained about the American “Hollywood” version of what happened and accused the United States Navy of “unprofessional” behavior in the Gulf. Tehran accuses Washington of “blocking the passage” of an Iranian ship in early April, exhibiting “dangerous behavior and ignoring warnings” on the ship.

Even with the US president, in a speech the night before, he promised businessmen in the energy, oil and gas sector that he will help them overcome the crisis, in a scenario in which many companies in the sector are facing, heavily indebted. Bankruptcy The Republican guaranteed that “he will never leave this great sector” of the American economy and asked the Secretary of the Treasury, Steven Mnuchin, to present support measures in this area.

(With international agencies)