Frankfurt Although the oil alliance Opec plus announced in April that it would cut oil production by around one million barrels a day from May, the oil price is weakening. The North Sea variety Brent has not yet managed to break through the mark of 80 US dollars per barrel in May. Currently, the Brent futures, which expires at the end of May, is around $76.
Oil is usually traded on the futures market, which means the investor buys the right to receive oil at a predetermined price and time. So the price of the futures contract reflects the expected price of oil at the time of delivery. If investors expect prices to rise, the new contracts are quoted above the current price.
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