The cost of benchmark crudes is gradually falling on Monday. Last week, oil showed growth due to the expectations of the consequences of the storm in the Gulf of Mexico.
At 8.30 a.m. Moscow time, Brent oil contracts for September cost $ 66.6 on the London Stock Exchange. This is 14 cents less than the level of the last trade. On Friday, futures slightly increased, growing 20 cents to 66.7 US dollars.
The American crude oil has fallen too. In the morning, WTI fell by more than 20 cents to $ 60 per barrel on NYMEX. Since the end of the last session, the price has barely moved, remaining at the level of $ 60.2.
Over the past week, Brent has increased almost 4%, while WTI has jumped 4.7%.
According to a reputable agency Bloomberg, more than 70% of the production capacity located in the Gulf of Mexico, had been suspended by Sunday. The threat of the storm caused that. Luckily, that one had a happy ending. Some companies are already preparing their staff to resume duties.
Based on the data provided by the U.S. Department of Energy, more than 15% of oil and about 3% of natural gas in the country are produced in the bay.
A report of the International Energy Agency (IEA) has negatively influenced the market. It didn’t meet the expectations and caused the drawdown of quotations. It says that in the first half of the year, supply in the oil market exceeded demand by more than 900 thousand b / d. This was despite the success in meeting the terms of the OPEC + agreement. Most likely, the second quarter will not be very successful too. There is no reason to expect anything other than surplus of 500 thousand b / d, although everyone was waiting for such a deficit.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group