On Thursday, oil prices showed a significant decline. The information from the United States about the growth of reserves and increased production caused the drop. Thus, the market is less worried about the lack of fuel due to reduced supplies from Iran, Libya and Venezuela, which means that prices for “black gold” are falling.
July futures for Brent crude oil traded on the London Stock Exchange are currently being traded at the price of $ 71.53 per barrel. This is 65 cents below the close of the previous session, when the price rose by 0.17%.
The June contracts for WTI crude oil on NYMEX have lost 72 cents and cost $ 62.88. At the last session, they fell by half a percent.
On Wednesday the US Ministry of Energy reported that oil reserves in the United States were growing at a record pace since September 2017. They have increased by 9.9 million barrels. Mining in the country has grown and set a new record – 12.3 million b / d.
Due to the growth of stocks and production in America, the market began to show a natural rolling back. But analysts are confident that the current recession won’t last very long. Investors will quickly return to the fears that put pressure on the market before, because geopolitical factors are still there, therefore the proposal may fall dramatically.
Experts of RBC Capital Markets noted that production in Venezuela could stop completely. The American authorities continue to put pressure on Maduro’s regime, which may lead to the permanent cessation of production by the end of the year.
There are anti-Iran sanctions for a number of countries that expire on Thursday. According to various estimates, exports from Iran have already declined and are less than 1 million b / d, because China has reduced purchases.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade