Reduced production raises oil prices

July futures for Brent crude oil May 21 at 8:40 am in Kyiv rose by 1.85% - up to $36.41 per barrel, Enkorr reports.

A barrel of July WTI oil was trading at $34.11 (+ 1.85%). Previous trading ended at $35.75 and $33.49 respectively.

According to the US Energy Information Administration (EIA), US commercial crude oil inventories fell 4.983 million barrels last week.

The growth of the price is also affected by the fulfillment of the contract to reduce production by the OPEC + group and other suppliers.

But in America, the incidence of COVID-19 is still high. In addition, experts give pessimistic predictions about the effects of blockages on the US economy. At the same time, India, the third largest oil buyer in the world, extended the quarantine regime until May 31.

Recall that in the United States the number of drilling rigs fell to the level of 1944.

It was previously reported that Kuwait and Saudi Arabia are planning to suspend offshore production in June.

Tags: contracts, oil, hydrocarbon production, USA, добыча нефти, drilling, коронавирус, foreign affairs, ОПЕК+, price, agreement, volumes, oil products, oil deliveries, field, gasoline, diesel, infrastructure, quarantine, Brent, WTI, pandemia, Saudi Arabia, COVID-19, decline in production, oil companies, oil reserves, crisis

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