Brent has fallen to $51.5 per barrel
On 10 October oil quotations are falling because of the concern that Russia may not join the OPEC agreement to reduce the oil production as well as due to the published on Friday information about a new increase in the number of drilling rigs in the United States.
The OPEC members and Russia intend to hold an informal meeting in the framework of the World Energy Congress, Istanbul. Judging by the statement of Alexander Novak, the main purpose of the meeting is consultations. Novak strongly doubts that the agreement will be signed during the meeting in Istanbul. New data of the company Baker Huges regarding the number of operating oil rigs in the United States showed an increase in volume of drilling rigs by 3 – to 428. This has become the maximum number since February. Due to this the price of futures contracts for Brent crude has fallen by 0.8% to $ 51.51 per barrel to the beginning of the day on the London Stock Exchange.
By this time the cost of the November contract for the US WTI crude oil has fallen by 0.9% to $ 49.35 per barrel in the bidding process of the New York Mercantile Exchange. Several meetings of the producing countries have been scheduled for the near future. These countries are preparing for the OPEC conference in November, which may indicate the seriousness of the intentions of the OPEC countries to reach an agreement.
Meanwhile, some OPEC countries have a lack of understanding. For example, at the weekend the Iraqi Oil Ministry reported about its call on companies, which are operating in the country, not to stop the increase in the production in the coming year.
At the same time prices are being supported by the falling inventories in the United States and the prospect of reaching an agreement on the reduction of oil production among the participants. According to the Wall Street Journal, the level index of raw material stocks in the United States has fallen by 5% over 5 weeks. There is such a tendency in Europe. Singaporean stocks of floating storages have decreased twice over the last week.