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The price of Texas intermediate oil (WTI) rose 2.67% this Friday and closed at $ 16.94 a barrel, in a day marked by global storage problems, the closure of wells and platforms of North American companies and the possible increase and advance in production cuts in some Persian Gulf countries such as Kuwait.
At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for June delivery gained 44 cents from the previous session on Thursday.
The prices of “black gold” rose again in one of the most volatile weeks on record and in which the barrel of Texan crude oil was trading negative for the first time in its history due to the lack of storage space and the drop lawsuit following the COVID-19 pandemic.
In this context, a large part of Canadian and US producers have reduced their activity to historic lows, especially in oil wells and platforms.
The lack of economic activity and the prospect that it is still too soon for reopening to increase demand relaxed the speed of rising oil prices during the day.
Analysts note that the lack of storage space requires additional cuts to those announced earlier this month by the Organization of Petroleum Producing Countries (OPEC) and its allies, an agreement to reduce pumping by 9.7 million barrels per day and that ended the price war between Saudi Arabia and Russia that ended up disrupting the market between March and April.
Some OPEC members such as Angola have already been prone to another, more ambitious adjustment as Russia has already said it will halve its exports from the Baltic and the Black Sea.
Likewise, China’s progressive return to normality inspires some confidence and optimism among investors, who while waiting for economic activity and demand to recover around the world are also expecting additional cuts to those announced by OPEC.
On the other hand, the markets continue to focus on the foreign policy of the President of the United States, Donald Trump, who during this week has re-stressed relations with Iran, something that analysts have interpreted as a geopolitical move in an area. key to sourcing crude and which in recent days has helped push prices
Global demand for oil is estimated to have fallen by nearly 30% due to the coronavirus, making it very difficult for the market to regain balance despite cutbacks and well closings.
In this context, gasoline futures contracts maturing in June, the reference month, rose just over two cents to $ 0.66 a gallon, and natural gas contracts, maturing in the same month, fell about 7 cents up to $ 1,746 per thousand cubic feet.
The price of a barrel of Brent oil for delivery in June ended today in the London futures market at $ 21.48, 0.28% more than at the end of the previous session.
North Sea crude, a benchmark in Europe, ended the day on the International Exchange Futures with an increase of $ 0.06 compared to the last trade, when it closed at $ 21.42.
The Brent price registered little variation today, despite the fact that pressure on the price remains due to the collapse of demand due to the COVID-19 pandemic and the lack of means to store surplus production.
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