On Wednesday morning, the December futures quotes on mark Brent on London’s ICE Futures exchange continued on Tuesday began a decline after the publication of the data about considerable growth of stocks of fuel in the United States. Compared to the close of trading on the eve of Brent fell by 1.1% – 50,20 dollar per barrel and was fixed at this level.
The contract for mark WTI for December in electronic trading on the new York Mercantile exchange (NYMEX), per night fell by 1.3% – 49,30 USD per barrel, reports “Interfax”.
Yesterday evening, the American petroleum Institute (American Petroleum Institute, API) reported increases in oil reserves in the U.S. by 4.8 million barrels last week. Gasoline inventories also increased (1.7 million barrels).
Analysts interviewed by the newspaper The Wall Street Journal, predict that on Wednesday, the energy Ministry data show the growth of oil reserves in the United States by 2.1 million barrels. If this forecast is confirmed, it means that after a series of reductions in the rate of inventory goes back to growth amid high supply of raw materials on the market.
The market participants against the background of continuing for the third day of lower prices will also have news about the negotiations between producing countries, among which appear all the more obvious differences. For agreement OPEC countries must agree on quotas for each country, which looks an increasingly distant goal.
Oil has risen more than 15% after a meeting in Algeria, but the complexity of the implementation of the reached agreements are becoming more evident.
This week Iraq, the second largest exporting member of OPEC, has demanded for the revision of the terms of the Algiers deal. The reluctance to cut production States and Iran.
Oil production continues to recover in Nigeria and Libya, which do not fall under the terms reached in the Algiers agreement due to the fact that their oil industry was partially destroyed during military conflicts. Thus, countries that are not ready to join the plan to reduce, account for over one third of total OPEC production
All this puts before selecting Saudi Arabia to assume greater obligations, losing market share to other oil-producing countries, or to soften the terms of the deal, losing credibility, says the Agency Bloomberg. In the worst scenario, the UK would have to reduce production much stronger than she was planning, almost two-year low.
“Russia is, at best, are willing to freeze production level in until a certain level. Iraq demands to be released from the obligations associated with the production decline, the same happens with Libya, Nigeria and Iran,” – noted in this connection analysts of the German Commerzbank.
Another factor in the decline in prices these days has become “expensive” dollar, traded Wednesday at around worth 1.0890 against the Euro.