Earlier in the day, Russia’s Gazprom Neft CEO Alexander Dyukov said that the recently concluded OPEC+ deal could increase oil prices to between $40 and $45 a barrel if the international community manages to curb the COVID-19 outbreak.

The price of Brent crude futures fell below $30 per barrel for the first time in past six trading sessions, as it was trading in the range $30-$37 last week on expectations of large cuts by the OPEC+ group.

As of 15:31 GMT, June futures for Brent crude were trading down 5.36 percent at $30.04 per barrel, touching a six-day low of $29.95 per barrel minutes earlier.

The price of May futures for WTI crude fell by 5.98 percent to $21.07 per barrel. 

Earlier on Tuesday, the International Monetary Fund (IMF) slashed its average oil prices forecast by $22.42 to $35.61 per barrel for this year and by $20.16 to $37.87 per barrel for next year.

At the same time, traders doubt that OPEC+ efforts to reduce crude production will be sufficient, and fears about the market balance persist.

Oil Prices Show Moderate Growth Before Dropping After OPEC+ Production Cut Deal

Earlier, the OPEC+ group finalized a deal to draw down global oil production, cutting output by 10 million barrels per day, effective from 1 May.

According to market data, Brent crude oil prices increased by 1-3%, before the benchmark, combined with WTI prices, started falling again. As of 1:07 a.m. Moscow time, the price of June futures for Brent crude oil had fallen by 0.66%, to $31.61 per barrel.

The price of May futures for WTI crude fell by 1.81%, to $22.79 per barrel. 

Minutes earlier, oil prices had demonstrated 1-3 percent modest growth at the Monday opening, according to market data.

This comes after the OPEC+ oil producers agreed to cut output by 10 million barrels a day during an online meeting on Sunday.

OPEC+ Deal Could Prompt Oil Price Rise to $45 Per Barrel By Year’s End – Gazprom Neft CEO

The OPEC+ deal will not prompt an immediate sharp rise in oil prices, but should the international community manage to curb the COVID-19 outbreak, it is possible that prices could rise to between $40 and $45 a barrel, Russia’s Gazprom Neft CEO Alexander Dyukov said.

“Of course, one should not expect a sharp increase in prices given the results of the deal. We continue to believe that the second quarter of 2020 will be the most difficult, but we hope that the removal of lockdown measures and the resumption of trade will take place in the summer, meaning that oil can reach its pre-crisis price by fall”, Dyukov stated in an interview with the Kommersant newspaper.

The Gazprom Neft CEO added that oil prices could reach $45 per barrel by the end of the year and expressed a positive outlook for the future.

“In such an optimistic scenario, the price could reach between $40 and $45 per barrel by the end of the year, with further growth in 2021”, he said.

According to the CEO, the OPEC+ deal is not set in stone and allows for adjustments depending on current market conditions. He said that Gazprom Neft is prepared for all market eventualities.

On Sunday, OPEC+ signed a landmark deal that commits member nations to reduce crude oil production by 9.7 million barrels per day in May and June. Thereafter, production will be cut by 7.7 million barrels per day until the end of 2020, and by 5.8 million barrels daily from January 2021 until April 2022.

Brent crude oil futures closed at $31.74 per barrel on Monday.