Oil is falling, but the market sentiment is confident
Oil is falling in price during the trading session on Thursday. This is due to profit-taking after the previous sharp increase of the prices because of the reduction in the US stocks. Also, the expectations of reducing the oil production by the OPEC countries as well as non-OPEC countries have become favorable to this.
At the start of the session futures contracts for the US WTI crude oil have fallen in price by 0.43 percent, amounting to $ 51.38 per barrel.
Contracts for Brent crude oil were being traded at $ 52.52 per barrel. This is lower by 0.28 percent than the index of the last session.
As traders say the price collapse was triggered by profit-taking after the rally that the market experienced on Wednesday. Then the price of WTI crude oil soared to the maximum of 15 months due to the information on the reduction of oil reserves in the United States by 5.2 million barrels for the week. The volume of stocks amounted to 468.7 million barrels.
ANZ reported on Thursday: “The price of oil continued to rise the evening before in connection with optimism regarding the limitation of the OPEC production and larger than expected decline in stocks.”
The general mood of the market can be called confident. Most experts predict the further increase in prices.