Oil prices on Monday continued to decline to new data about the increase in the number of drilling rigs in the United States, and also due to the strengthening of the dollar against a basket of world currencies to a seven-month high, reports RIA “Novosti”.
The cost of December futures for Brent crude on the London ICE Futures exchange to 8:00 Moscow time has decreased by four cents, to 51 and 91 dollars per barrel. The price of November futures contracts for WTI crude oil during trading on the new York Mercantile exchange (NYMEX) fell 12 cents to 50.23 per barrel.
According to oil service company Baker Hughes, the number of oil drilling rigs rose for the week on five pieces. This trend persists for 1.5 months.
These data reinforce expectations of a possible increase in production volumes from the United States, one of the world’s largest oil producers.
The current price of oil exceeding $ 50 per barrel is comfortable for US shale industry, which will continue to reopen the well, increasing production and reserves. This, in turn, will complicate the process of achieving a balance of supply and demand in the market and can exert pressure on world oil prices, analysts remind.
We will note, last week it became known that the production of oil by OPEC countries reached an informal agreement on production cuts, in September rose again to record levels in the world with the continued limited demand and higher crude stocks in the market.
OPEC will hold an official meeting on 30 November to discuss plans to reduce oil production.
The strengthening of the dollar against world currencies is due to expectations of imminent increase in benchmark interest rates, the fed and negatively affects oil prices.