Oil is rising because of the expectations of the market balancing
On Tuesday oil quotes are rising as a number of experts suggested that the market was not so oversaturated, as it had been thought earlier. Experts also say that before the winter the growth scales of the world reserves are not too high in the northern hemisphere, which is always characterized by a high demand.
Oil prices have been also supported by the falling US dollar, which has moved away from the peaks for 7 months (the achievement of the previous session).
By the morning the futures contracts for Brent crude oil have grown by 0.52 percent, amounting to $ 51.79 per barrel.
By this time WTI oil contracts have cost about $ 50.21 per barrel. It is 0.54 percent higher than the price of the close of the previous session.
According to traders, oil is being supported by the opinion that the markets, which have been under the pressure for 2 years, are more balanced now than it was thought before.
Bernstein Energy experts report: “Global oil reserves have increased by 17 million barrels to 5.618 billion barrels in the third quarter of 2016. This is the slightest increase from the fourth quarter of 2014 that confirms the slowdown of the stock growth, while the market is returning to the equilibrium. “
The cartel of the petroleum exporting countries is planning to meet on November, 30. It will discuss the project of the reduction of oil production by about 1 million barrels per day from the September unprecedented level of 33.6 million barrels per day.
In addition, the OPEC hopes that Russia, one of the largest oil producers, will help to implement this project.