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Brent loses its value due to worries about economic slowdown

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Brent loses its value due to worries about economic slowdown
March 25
09:00 2019

We start the week with the news from the energy world. The oil market continues to decline at the beginning of the week due to the negative sentiment about the drop in the overall economic growth.

Brent contracts for May have slipped 40 cents to $ 66.35 per barrel. WTI contracts for May have fallen 45 cents to the value of 58.59 US dollars.

Last week, the cost of Brent was down 0.2%, while WTI rose 0.4%.

According to Caroline Bain, Senior Commodities Economist at Capital Economics, the market will maintain its approximate balance until June. It won’t be possible to reach a complete balance, and in the middle of the year Brent will reduce the price to $ 60 due to the concerns about a slowdown in the global economy.

The number of active drilling rigs (as Baker Hughes reported) has been decreasing for the fifth week in a row. There is a decrease of 9 units. Now 824 drilling rigs operate in the US. Such statistics indicate a possible drop of activity in the industry.

CEO at InfraCap Jay D. Hatfield believes that the price of WTI in the next couple of weeks will be kept at the level of 55-60 US dollars. In the summer, the price of the US crude may rise to US $ 60-70 due to the increased demand for fuel.

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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