Today’s morning is not very successful for oil as bid prices have dropped significantly. This happened as a result of yesterday’s report publication on the amount of accumulated fuel in the United States. The report is published by the American Petroleum Institute (API), and then the figures are corrected by the official data of the US Department of Energy. The Institute of Petroleum issues such statistics every week; it provokes the volatility of reference mark oil.
Yesterday’s report showed: in a week “black gold” reserves have increased by significant 3.23 million barrels.
The analysts of the oil market interviewed experts and agreed that the Ministry of Energy was likely to report on an increase in oil reserves by about 900 thousand barrels. Official data will be made public today.
The market has unambiguously reacted to this news by lowering quotations for the oil of reference marks.
So, just today, March futures for Brent crude oil (traded on the London stock exchange ICE Futures) has fallen in price by 0.74% (in absolute figures – by 0.51 US dollars) to the level of 68.51 US dollars per barrel. Yesterday, the fall was 0.63% (by 0.44 US dollars to the level of 69.02 dollars per barrel).
Oil of another reference mark – WTI – has managed to drop today by 0.85% to the level of $ 63.95 per barrel. The decrease in oil prices in absolute terms has amounted to $ 0.55. Yesterday, WTI crude oil showed a drop of 1.62% to $ 64.50 per barrel. We recall that WTI benchmark is traded in electronic bidding on the New York Mercantile Exchange (NYMEX).
Quotations for WTI futures for March in electronic bidding on the New York Mercantile Exchange (NYMEX) had fallen by $ 0.55 (0.85%) to $ 63.95 per barrel by the time indicated. As a result of the last session, their price fell by $ 1.06 (1.62%), to $ 64.50 per barrel.
The fall in prices is likely to continue. This is due to the fact that according to the world’s third-largest oil-services provider Baker Hughes, oil production in the United States has grown to the maximum level over the past 35 years, the number of drilling rigs in the US has been growing.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade