More recently, oil prices have already fallen to a three-week low. This was due to the fact that the market was waiting for the release of the daily report of the US Ministry of Energy. It would seem to be the bottom. On the contrary, many analysts of the energy market confidently predicted the strengthening of oil against the backdrop of growing tension in the Middle East.
Nevertheless, today futures for Brent (with deliveries in August) are being traded on the London Stock Exchange ICE Futures for $ 49.26 per barrel. That is, since the start of the bidding oil has fallen by almost half a percentage (in absolute terms by $ 0.21).
For the similar time futures for oil of another brand – WTI (with deliveries in July) have fallen to $ 47.17 per barrel (that is by $ 0.23 or as a percentage by 0.49%) on the New York Mercantile Exchange NYMEX.
Experts expect the decline to continue. As it turned out, the news about the non-continuation of diplomatic relations with Qatar didn’t affect the market. At first, oil prices increased because some experts had expressed the possibility of the disruption with shipment of black gold. However, due to the minimal probability of the development of events under such a scenario, the market came back to the previous trends.
Now the market is affected by the fears of analysts about the failure of the agreements on the volume reduction of extracted resources. In addition, the increase in oil production in the United States is of a great importance for the energy market. Unfortunately, the expansion of the production reduces the effect of the production decrease by the OPEC countries.
On Wednesday evening, experts are waiting for the report release of the US Department of Energy on the number of the gained stockpiles. It is possible that the figures will show some decrease in the reserves of the oil storage in the United States. So, a small growth of oil quotes is a possible scenario for the development of the event for the next few days.
The material was prepared with the participation of Marina German,
a leading analyst of the brokerage company CT Trade