During the session on Monday, oil began to decline after it had been growing since November.
Brent futures for April are currently being traded at $ 66.9 per barrel. This is 22 cents below the level of the previous session, when they cost $ 67.12. The price was the highest since early November.
WTI contracts for April have slipped by 11 cents to $ 57.15 per barrel. On Friday, they cost $ 57.26, which is also the maximum value since the beginning of November.
Due to the positive news about the US and China negotiations, the past week was positive for the oil market. Brent rose in price by 1.3%, and WTI by 3%.
It was decided to postpone the increase in duties on Chinese goods. The new tariffs were expected to enter into force on March 1, but due to the progress in the negotiations, President Trump decided to postpone them.
On Friday, the market was also supported by the data from Baker Hughes. It turned out that the number of production rigs had decreased for the first time in three weeks that meant minus four units. Now there are 853 rigs in the States.
The decline in shale mining has been expected for a long time, and experts believe that it will happen soon. However, some analysts suggest that by the end of the year, the level of the production in the United States will be about 13 million barrels per day.
At the moment, the balance of the oil market depends on Saudi Arabia and its “colleagues” in the Arabian Peninsula. Iran and Venezuela have been sidelined because of the US sanctions.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade