Oil: OPEC+ thinking about the folding program to support the market

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The price of oil (July futures) on Friday 25 may to 14.26 MSK decreased by 2.4% to 76,94 dollars per barrel for Brent. The market of black gold continues to be significantly adjusted on the background of negative signals. In addition to an unexpected jump in oil inventories in the US last week, OPEC members+ began to talk about the decommissioning programme for the reduction of production of major oil producers.
So, Russian energy Minister Alexander Novak noted that the excess of commercial oil reserves in the world at the moment is close to zero. In this regard, a gradual increase in oil production within the OPEC agreements collapse+ can be started in the third quarter of the current year, if such a decision is made, he added.
The size of the possible collapse of the agreement OPEC+ will be discussed at the meeting of the Ministerial Committee in June, and the market begins to play.
As for the ruble, it is the day declined against the dollar and the Euro, reflecting the weakness of the oil market. At the same time, the active phase of the tax period may partly counteracts this pressure. In the end, the price of oil in rubles has already slipped to the level of 4750 per barrel for Brent.
The dollar to 14.25 MSC grew from the start of trading by 0.8% to 62.1 per ruble, the Euro by 0.6% to 72,61 of the ruble. Until the end of the day, the U.S. currency will fluctuate in the range of 61.6-62.6 ruble, Euro – in the hallway, 72-73,2 rubles.
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Ivan Marchena,
Analyst
GK Forex Club