The price of a barrel of WTI for delivery in June, of which this is the first day of use as a contract reference, appreciated from more than $ 4 Wednesday in the beginning of the american session, a jump of 40 %, in a market that is subject to significant volatility.
To 10: 15 a.m. (Montreal time), the price of WTI american was 14,76 billion, an increase of 27,57 % compared to the end of Tuesday and a little after reaching 16,20 dollars.
A barrel of Brent North sea for delivery in June gained her side 9,42 % to 21.15 dollars in London, then he touched a few hours earlier its lowest level since June 1999 to 15,98 usd.
“The volatility (current) will persist for a time until the entry into force of the agreement OPEC+ 1 may “, assured Wednesday the Russian minister of Energy Alexander Novak, quoted by Russian agencies after a video-conference with the deputies of the state Duma.
Investors febrile mishandle the two reference who know for several days of movements of great magnitude, pushing even the previous contract of WTI in negative territory on Monday and then again the next day for its last day of trading.
“Today, we find ourselves in the most active phase of the falling demand. According to various estimates, this decrease is equivalent to 20-30 million barrels per day, ” he added.
Russia, associated with members of the Organization of petroleum exporting countries (OPEC), has agreed on 12 April to participate in the agreement to reduce the offer in a much smaller, $ 9.7 million barrels per day from the month of may.
These cuts massive “are not currently sufficient to offset the decline in demand and stabilizing the oil market,” says Eugen Weinberg, analyst at Commerzbank.
The oil market is ravaged for weeks by the restrictions put in place around the world to stop the spread of Covid-19. With transportation severely restricted, and many plants shut down, the energy demand has collapsed.
And it “is not expected to recover in the short term,” said Stephen Brennock, an analyst within PVM.