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Brent drops to $ 60.15 after its growth on the eve

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Brent drops to $ 60.15 after its growth on the eve
August 26
09:00 2019

The last session was marked by a large increase due to the released data on the reduction of fuel stocks in the USA. However, today oil shows a small adjustment and gradually falls in price.

Prices did not continue to rise, as there was the information that last week the production in the United States had increased to a record level.
As of 8 am Moscow time, October contracts for Brent crude oil on the London Stock Exchange dropped 30 cents to $ 60.15 per barrel. Over past trading, the price grew almost a dollar. On Wednesday, trading closed at $ 60.5.
On NYMEX, futures of the American brand fell almost 20 cents and were at the level of 55.6 US dollars. On Wednesday, the brand showed an increase of 1.5% and closed at 55.8.

According to the US Ministry of Energy, fuel reserves in the country have decreased by 10 million barrels. This is the biggest drop in stocks since the end of last year. According to the experts’ forecasts polled by S&P, the reserves should have reduced by about 4.7 million barrels.

At the same time, the level of oil production has increased significantly – by 200 thousand b / d. Now the United States produces 12.5 million barrels per day. This is the highest level of production in the recorded history since 1983.

A decrease in US stocks indicates that the OPEC + course for production reduction has a major impact on the market. At the same time, the market ends the month with a decline. This indicates that investors do not count on a favorable outcome of the trade conflict between China and the United States, which in turn overshadows the forecasts for global demand.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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