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Oil prices are falling due to the profit-taking on Friday

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Oil prices are falling due to the profit-taking on Friday

Oil prices are falling due to the profit-taking on Friday
September 09
10:30 2016

Oil quotes are falling due to the profit- taking on Friday, ending the previous session with the growth  by 4 percent. The increase was caused by the sharp reduce in the amount of raw material stocks in the United States. This has happened due to the fact that the import to the Gulf of Mexico has decreased to historically low levels.

Futures for Brent and WTI have gained about 6 percent this week and are ready to show the maximum weekly growth over three weeks after Russia and Saudi Arabia have agreed to cooperate to stabilize the market. They signed this agreement on Monday.

The price of Brent crude oil has fallen by 0.86 per cent to $ 49.54 per barrel to the beginning of the day.

Futures for WTI crude oil have lost 0.80 percent and became equal to $ 47.24 per barrel.

The reserve amount of oil in the United States has decreased by 14.51 million barrels for the week. According to the Energy Information Administration (EIA) it has been the strongest drop since January 1999.

Also, the import of oil to the US Gulf Coast has reached its minimum point. It has fallen to 2.5 million barrels per day. This has become the minimum point since the beginning of the index countdown in 1990.

As traders say, the Tropical Storm Hermine has caused the import fall, as the shipment in Texas and Louisiana was suspended.

On average, since the beginning of the month 11 million barrels are being extracted per day in Russia. Two sources from the industry report that the figure is about an unprecedented high point.

OPEC members and countries that are not a part of the organization (including Russia) will probably discuss the likely reduction in the oil production on the sidelines of the International Energy Forum in Algeria on 26-28 September.

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