According to the auction, the November futures price for North sea Brent blend rose 53,59 dollar per barrel. Futures for light WTI oil price rose to 50,4 per barrel.
MOSCOW, 9 Oct. World oil prices continue to increase due to the publication of the minutes of the meeting of the Federal reserve system (the fed), which supported the investors ‘ optimism regarding the postponement of a rate hike in the U.S., as well as on the depreciation of the dollar, according to AFP.
As of 13.03 MSK price of November futures for North sea Brent blend has grown on 1,02% — to 53,59 dollar per barrel. Futures for light WTI oil rose in price on 1,95%, to 50.4 per barrel.
According to the minutes of the September FOMC meeting, the members of its open market Committee believe that for the first since 2006 the rate increase is necessary to maintain the level of inflation closer to 2%. Another reason for the failure to raise rates at the September meeting was the uncertainty about the state of the economy abroad.
The minutes of the fed meeting fuelled expectations of market participants about the fact that record low interest rate will remain in the United States in 2016. For 2015, the regulator had also scheduled two meetings in late October and mid-December.
In addition, a depreciation of the dollar supported oil quotations. As at 13.03 GMT, the dollar index (the dollar against a basket of six currencies of countries — major U.S. trading partners) was down 0.40% to 94,92 points.
According to analysts of the firm PIRA Energy Group, who predicted a year ago the fall in oil prices, by the end of 2016, oil will cost $ 70 per barrel, and in 2017 — $ 75 per barrel. “The fed report and price forecast PIRA analysts today support the oil price. Perhaps the rally will be sustainable only in the short term, and next week the pace of growth will diminish, as the market continues to be oversupply,” said PVM oil analyst Tamas Varga (Varga Tamas) to Reuters.