The Colombian Stock Exchange’s Colcap index ended with a 1.43 per cent rise. The most valued shares were Avianca (+186.67%), Bancolombia (+5.09%) and PFB Colombia (+3.67%) respectively. Texas intermediate oil (WTI) prices closed on Tuesday with an rise of 3.3 percent to US$ 34.35 a barrel, encouraged by the strong progress of the Organization of Petroleum Exporting Countries and their partners (OPEC+) and the relaxation of virus control measures due to economic reopening.At the end of the New York Mercantile Exchange (Nymex) operations, WTI’s futures contracts for delivery in July totaled $1.10 compared to Friday’s previous session, since yesterday Monday was a United States holiday.
Oil prices rose in an optimistic sense, particularly following information from the Russian Ministry of Energy, which announced yesterday that production in this country had already dropped to its target of 8.5 million barrels per day ( bpd) and that they are sure that the market balance will return between June and July. The production cuts agreed by OPEC+ at its last meeting and expanded in recent months are aimed at mitigating the decline in demand for fuel, which collapsed when the coronavirus pandemic of SARS-CoV-2 began and caused governments to impose travel and economic activity restrictions.
Now, as operation begins to restart and fuel usage picks up as road traffic rises, analysts are forecasting a return to energy balance between June and July. “For the rise in oil prices to continue, demand must continue to recover near normal levels while cutting global market supply,” said head of oil markets at Rysyad Energy, Bjornar Tonhaugen, in a note, which added that OPEC + would have to address at its next meeting dated June 9 a renewal of the current agreement to keep those 7.7 million bpd out of the market for the second half of 2020. “Otherwise, Oil price spikes will disappear sooner rather than later, “Tonhaugen concluded.