Today oil prices are breaking records with a negative sign. The reason for this anti-record is another publication of the data on the current state of oil production in the USA.
For this morning, August futures for Brent crude oil аre being traded on the London Stock Exchange for $ 47.2 per barrel. This is $ 0.17 less than the price of the same futures at the end of the trading on Friday.
New York Mercantile Exchange (NYMEX) determines the prices for July futures for WTI oil. At the moment this asset is being traded at $ 44.56 per barrel, which is $ 0.18 less than the futures price of this brand at the end of the trading on Friday.
The reason for this impetuous drop of oil quotes is the increase of oil production in the USA as well as public statements of the Libyan company National Oil Co. Representatives of this national oil giant declared that Libya neither participated nor planned to join the agreement on the reduction of oil production on its territories. It was also announced that the volume of oil production in Libya would rise to 900 thousand barrels per day in the coming days. This is one hundred thousand barrels higher per day than the current national indicators.
Speaking about the USA, the company Bake Hughes informs that the number of operating drilling rigs is 747. This indicator has been growing for almost half a year and has become an absolute record for the last quarter of the century.
Traders should expect the increase in oil prices these days; further decline is hardly possible as a turn is expected.
The material was prepared with the participation of Marina German,
a leading analyst of the brokerage company CT Trade