The world’s largest oil company, Saudi Aramco, has set a price chart for oil buyers in June where prices increased for all markets, including Asia, the USA, and Europe, Report informs citing the Bloomberg. According to the agency, price recovery for Saudi oil gives hints to the market on improving demand for oil. So, the June prices for deliveries to Asia increased by $ 1.4 per barrel, now the discount to the standard has dropped to $ 5.9 per barrel.
The market felt optimistic about demand, said Raiffeisenbank analyst Andrei Polishchuk. “This is evidenced by the increase in Brent prices to $ 30 per barrel, investors are responding to the news about quarantine measures in China, Germany, Austria, and other countries,” – he said. Nevertheless, the expert believes that the current trend cannot yet be called stable, since world oil reserves will continue to grow, despite the OPEC + agreement. “Our forecast for the third quarter of 2020 is an average of $ 35 per barrel,” – he concluded.