Oil the day before has risen in price by about 1% on Thursday again cheaper. In the morning, as the findings of trading, the black gold has fallen in price amid US Department of energy about fuel stocks in the country, reports “Interfax”.
Commercial oil stocks in the U.S. for the week ended may 12, decreased by 1.8 million barrels, or 0.3%, to 520,8 million barrels. Experts had expected a significantly larger decline, by 2,283 million barrels, or 0.43%, to 520,217 million barrels.
According to the chief market strategist Greg McKenna AxiTrader, which leads to RIA “Novosti”, the stocks declined less than analysts had forecast.
In addition, according to the us Department of energy, the oil reserves in the country’s largest terminal Cushing remained at the level of the previous week, amounting to 66.3 million barrels. Oil production in the United States this week declined by 0.1%, or 9 thousand barrels per day, up to 9,305 million barrels per day.
It also became clear that Saudi Arabia and Russia that they support the extension of the deal, OPEC and non-OPEC to reduce production for another nine months, creates a more positive mood in the market, but does not change the situation radically.
Oil prices may temporarily and slightly increase after successful completion of the meeting of the cartel next week, but at this stage nothing but the steady trend in the reduction of commercial oil reserves will not cause the market to grow, says Societe Generale analyst Michael Wittner. OPEC may hold another meeting in late November – early December, to align target production for the first half of 2018.
As of 08:26 Moscow time the cost of July futures for North sea petroleum mix of mark Brent has decreased on 0,59%, to 51,90 USD per barrel. The price of the June futures for WTI decreased on 0,57% – to 48.79 per barrel.
After noon, the rate of decline has accelerated amid political crisis in the US caused a new scandal around the President of Donald trump.
The price of July futures for Brent crude on the London ICE Futures exchange for 14:31 Moscow time has decreased on 77 cents (1,47%) – to 51.44 per barrel. The June contract for WTI crude oil in electronic trading on the new York Mercantile exchange (NYMEX) fell by 71 per cent (1,45%) – to 48,36 USD per barrel.
Meanwhile, investors around the world get rid from risky assets and shifted to gold and safe haven government bonds as soon as the revelations about trump continue to crumble like a horn of plenty, writes Finanz.ru.
To Moscow came a wave of panic selling that swept global markets after the U.S. Congress received a proposal to start the impeachment of Donald trump.
14:10 Moscow time the dollar exchange rate grew by 93 cent (1.81 per cent) and broke the mark of 58 rubles, above which rose only twice in the last four months. Euros were imitated by 87 cents (1.3 per cent) to 64,5525 of the ruble, reversing the levels of early February.
Included in the MICEX index companies fell to 99 billion roubles over four hours of trading. Receipts for shares of “Rosneft” in London fell by 4.3%, Sberbank – by 3.7%, VTB – on 2,8%.
The demand for Russian government bonds on the eve of the collapsed four times and was the lowest since December 2013, due to the lack of non-residents the Ministry of Finance for the third time since the beginning of the year could not sell the whole planned volume of OFZ.