Crude oils continue to drop due to the fears of falling global demand. Uncertain forecasts regarding the global economy caused the fall.
At the last session, Brent lost 1.5% and, thus, went into a bearish trend. The overall decline in oil prices from the highest levels set in April has amounted to 20%.
Analysts believe that the market is greatly influenced by the factors such as concerns about global demand and the trade dispute between the US and China.
Investors are thinking the worst and put in a price a possible scenario of a global trade war. Despite this, prices are still constrained by the difficult situation in the Middle East, as well as decreased supplies to America.
As of 8 a.m. Moscow time, Brent futures for October on the stock exchange in London lost only 8 cents. Their price has dropped to $ 58.86 per barrel. At past trading, the price fell more. Having lost almost a dollar over one day, it closed the session at $ 58.95.
On NYMEX, the September contracts for American benchmark have declined slightly too -by 5 cents and now cost $ 53.6. At the last session the price dropped by $ 1.06. On Tuesday, the trading closed at around 53.6 US dollars.
Experts suggest that stocks in the United States will decrease for the eighth consecutive time. The heavy workload of the processing segment can cause the decrease. Data from the Ministry of Energy will appear on Wednesday. Analysts interviewed by S&P believe that stocks will decrease by about 3.8 million barrels.
According to the API data, last week, US stocks fell by 3.4 million barrels. The Institute collects the data from refineries, storage facilities and pipelines.
On the eve, the Ministry of Energy presented a forecast for the cost of Brent crude oil. It is expected that in the second half of the year the price of Brent crude oil will be approximately 64 US dollars, in 2020 – 65 US dollars. In previous forecasts, the projected cost for 2019-2020 was $ 67.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group