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Oil is growing due to the weak dollar after the data release on stocks of the US raw materials

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Oil is growing due to the weak dollar after the data release on stocks of the US raw materials

Oil is growing due to the weak dollar after the data release on stocks of the US raw materials
September 01
09:00 2016

Oil quotes have grown on Thursday in Asia after the collapse by nearly 3 percent on Wednesday. The oil prices growth is explained by the weak position of the dollar. On the eve the decline happened due to the release of the information about the increased oil stocks in the USA.

The US has reduced the production of raw materials by 60 thousand barrels over the week. Today the production level is amounted to 8.48 million barrels per day.

Phil Flynn, an expert at Price Futures Group notes that the US does not stop “black gold” import, which, in its turn, increases the reserves of the country.

“It is surprising to see that the US continues to import significant volumes of oil. Despite the decline in the market on Wednesday, oil prices finished August with the growth, interrupting a series of falls, which lasted in the last few months “, – said Mr. Flynn.

Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney, said: “Today the weakened dollar provides support for oil prices. The dynamics direction of oil prices is governed by the supply and the dollar strength. “

By the beginning of the day futures contracts for the US raw materials have jumped by 0.51 percent – to $ 44.93 per barrel.
Now futures for the Brent crude oil cost $ 47.11 per barrel. They have gone up by 0.47 per cent. Since the close of the previous session the cost has grown by 0.55 percent.

In August prices for the benchmark crude oil grew strongly on expectations that oil producing countries would be able to agree on the freeze level of the raw material production at the September meeting in Algeria. The growth of Brent prices in August was almost 11%.  WTI has increased in price by 7.5% on expectations that oil-producing countries agree to freeze the oil production during the meeting scheduled for September.

According to the Energy Information Administration (EIA), the oil growth is observed after the information about the US oil stocks was released. Stocks of raw materials have increased over the last week by 2.28 million barrels – up to 525.9 million, although the experts make predictions about their growth – by 0.92 million barrels.

Oil quotes are also supported by the sudden growth of the Chinese manufacturing sector, which is confirmed by the Thursday’s publication of the official data on the manufacturing activity last month.

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