Oil prices complete the rally week, adding more than 10% in two days, amid data from China showing signs of recovery in demand, and statistics from the United States, where the number of drilling at shale deposits is rapidly declining.
By 22.54 Moscow time, July Brent futures are rising 5.2%, to 32.74 dollars per barrel - a new high since April 13. Contracts for WTI in New York are trading at $ 29.55, and previously nearly hit the $ 30 mark, which the market has not seen for more than three months. During the day, American oil became more expensive by 7.22%, and since the beginning of the week - by 20.6%.
According to Baker Huges on Friday, last week the number of drilling rigs operating in the USA fell by another 35 pieces. Of the more than seven hundred installations operating on shale formations at the beginning of the year, 339 units remained - the minimum number in the history of statistics that has been conducted since 1940.
Of the still operating drilling, 255 are involved in oil fields. During the week, oil workers stopped another 34 plants, and their total number dropped to an 11-year low.
Oil production in the United States continues to fall at a rate that statistics recorded only in 2005, when Hurricane Katrina hit the southern states - by 300 thousand barrels per week and by 1.5 million from the beginning of the year.
China's largest oil importer in the world, meanwhile, is increasing fuel consumption as the economy wakes up after quarantine. According to the National Bureau of Statistics, in April, Chinese refineries processed 13.1 million barrels per day - 11% more than in March.
“The widespread reduction in supplies and additional demand for fuel from the emerging economies“ helped pull the oil market out of the abyss, ”BofA Global analysts said in a review.
According to their forecast, before the end of July oil may rise in price up to $ 35 per barrel of WTI, however, it will be difficult to rise above quotations. “First, rising prices will slow down production cuts; secondly, the second wave of coronavirus with new quarantines and devastating consequences is not ruled out; thirdly, stocks in storage facilities remain extremely high, and even a small excess of supplies can overturn the fragile balance in the market, ”BofA Global notes.