Brent is falling in price at the start of the trade on Tuesday
Oil is falling in price at the beginning of the session on Tuesday. This is happening in anticipation of the statistics, which is released every week. It shows the level of fuel stocks on the US market. The experts predict that the stocks can potentially demonstrate the significant growth.
Due to the grown inspiration of the market participants about the agreement among the OPEC members, the oil quotations have soared to a maximum level over the month – to $ 50.90. By the end of the trade contracts were being traded at $ 50.89 showing the increase by 1,4%.
According to Barclays analysts, the positive forecasts about the expectations in regard to the cartel arrangements are on the high level. Last week these forecasts forced prices to rise by 7%. Nevertheless, there is a risk of a significant decline in prices if the forecasts aren’t realized.
Referring to the failed April negotiations of oil-producing countries, Morgan Stanley believes that there is a considerable risk that the meeting in Vienna will be useless. A strategist of the credit institution considers that it is needed to solve many issues that influence the final agreement regarding the reduction of total oil production by 1-2% .
Taking into account the market supply and demand balance, experts have doubts that prices may soon rise above $ 55 even though definitely negative signals will be present.
At the beginning of the day futures contracts for Brent crude oil for December have fallen in price by 0.3% to $ 50.75 per barrel on the London Stock Exchange.
Quotes of November contracts for the US WTI crude oil have fallen by 0.4% and have become equal to $ 48.62 per barrel on electronic trading on the New York Mercantile Exchange.