Oil goes down – players are afraid of excessive supply
The cost of oil is falling this morning due to uncertainty of the players regarding further prospects for demand. As of 10:16 Brent fell 0.99% to $43.09, WTI fell 1.17% to $39.80. The negative dynamics is associated with the transition of OPEC+ to the second stage easing the restrictions on oil production reduction. As a reminder under the current contract, the level of restrictions is gradually decreases - in August it is 7.7 million bps instead of 9.7 million bps, that were previously in place. The Alliance intends to adhere to these quotas until the end of the year. However, the transition to a new stage has raised concerns among investors that there may be an oversupply in the market - besides that circumstances, there is now a possibility that the United States The United States will decide to increase production, the agency says. Reuters views the situation of top manager of Nissan Securities Hiroyuki Kikukawa. Such a step by the States is facilitated current prices recovering from their spring lows. On the other hand parties, the coronavirus situation continues to be a threat to of the demand for oil.