oil Prices jumped more than $ 1 per barrel on Monday after big manufacturers finally agreed to the biggest all-time with production cuts, but growth has been limited because of fears that this will not be enough to make up for excess supply.
Cost of June futures for Brent crude on London's ICE Futures exchange Monday totaled 32,84 USD per barrel, which is 4.3% above the level of the previous session. During the session, the growth rates reached 8%.
the WTI may Futures on new York Mercantile exchange (NYMEX) rose in price by this time almost 5 percent to 23.89 percent.
After a four-day debate, the Organization of countries-exporters of oil (OPEC), Russia and other manufacturers, the group known as OPEC +, agreed Sunday to cut production of 9.7 million barrels per day (bpd) in may and June to support oil prices, representing about 10% of the world supply.
Even given the fact that major OPEC members will fully comply with its obligations, the reduction of world production will amount to 4.3 million barrels per day compared to levels of the first quarter, noted Goldman Sachs.
the Bank added that oil prices will continue to fall in the coming weeks, and I believe that "historical, but not sufficient" transaction of major oil producers to reduce production is unlikely to offset the drop in demand due to the pandemic.
According to Goldman Sachs, a greater reduction in the production of the G20 countries are also not much help.
"In the end, it just reflects the fact that no voluntary reduction may not be large enough to compensate for average loss of demand in April and may in 19 million barrels a day because of the coronavirus," said Goldman Sachs.
