Oil prices fall due to fears of the second wave of coronavirus in China

Oil prices showed a decline amid fears of the possibility of a second wave of coronavirus in China, writes NEWS.ru.

The cost of July futures for Brent crude oil at 7.00 AM Monday, in Washington, DC, USA time fell 2.39% to $ 30.23. June futures for WTI crude oil declined 1.9% to $ 24.27 per barrel.

In addition to concerns about a new wave of adverse epidemiological situation in China, traders are worried that the market is full of oil, and demand for it remains low.

The COVID-19 pandemic provoked a record drop in oil prices due to a collapse in demand for raw materials.

The market was also negatively affected by the fact that in March the countries participating in the OPEC + agreement could not agree to extend the previous deal.

After a series of consultations, the states worked out new conditions to reduce raw material production, and the new OPEC + agreement entered into force on May 1.

It is estimated that production should decrease by 9.7 million barrels per day, 7.7 million in the second half of the year, and June 5.8 million until the end of April 2022.