Trump’s Climate Agreement withdrawal strikes oil prices, Ruble

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June 2, 2017 – Fort Russ News – 

KtoVKurse – Translated by Inessa Sinchougova 

The Ruble began trading lower on the morning of Friday 2nd June, amid falling oil prices, which reacted to the decision of the US President Donald Trump’s withdrawal from the Paris climate agreement.

By 13:55 Moscow time, the US dollar gained 0.35% – to 56.6 rubles, the euro – 0.4% and is worth 63.5 rubles.

Brent crude oil lost 2% in value and the barrel is estimated to be $ 49.32 for the first time since 10th May.

The drop in oil prices is accelerated after the publication of data on the increase in US production to the highest level since August 2015. Production increased last week by 22 thousand barrels per day – up to 9.34 million, but US crude inventories fell by 6.428 million barrels – up to 509.912 million barrels. 

US production is undermining OPEC’s efforts in normalising the balance in the market. While demand is increasing, prices will be difficult to raise further than  $55 per barrel, according to experts of the commodity market.

Oil production by OPEC countries in May increased due to Libya and Nigeria, who are exempt from the reduction of production in the framework of the existing agreement.

The drop in oil prices today is attributed to Donald Trump’s decision to withdraw from the Paris climate pact, which can trigger the growth of drilling activity in the US and as a result, aggravate oversupply on the world market.

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