Brent futures price rose to $30 on expectations of demand recovery

The cost of July futures for Brent crude on the London ICE exchange rose to $30.5 per barrel as of 16:38 Moscow time. At the end of April, the price of this futures fell below $23.

The June futures for American WTI crude oil (May futures for it collapsed to minus $35) also rose to $23.9. At the April 21 low, it sank to $8.6. Why this happened, we told in detail here .

The main reason for the rise in oil prices is the hope for economic recovery and the establishment of a balance between supply and demand.

First, European countries have begun a gradual easing of quarantine measures, the Financial Times notes . Some restrictions are planned to be lifted even in California, the most populous US state, despite the difficult situation with coronavirus in the country as a whole. “Oil prices are rising rapidly as demand resumes!” tweeted US President Donald Trump .

Secondly, the OPEC+ deal in a new format came into force on May 1. It assumes a reduction in production by 10 million barrels per day in May-June 2020. Analysts at S&P Global Platts note a slowdown in the growth of oil reserves in the US, although the country is not participating in the OPEC deal. This may also indicate a reduction in production, Interfax quotes them.

According to . Morgan Stanley, quoted by Bloomberg, the peak of production has already been passed, but the market will be oversaturated for several more weeks