Oil is trading in a weak positive territory within the correction

Oil is trading in a weak positive territory within the correction

Oil prices rise slightly, correcting after the decline data on production growth in OPEC. The cost of the November futures for Brent blend rose 50,62 dollars, for WTI crude oil – up to 47,48 dollars per barrel.

MOSCOW, 13 Oct. World oil prices show a weak positive trend on Tuesday, correcting lower on data about the growth of production in the Organization of countries-exporters of oil (OPEC) in September, according to AFP.

As of 09.20 Moscow time the cost of the November futures for North sea petroleum mix of mark Brent has grown on 0,02% — to 50,62 dollars per barrel. Price of November futures for oil of mark WTI has grown on 0,81% — to 47,48 dollars per barrel.

According to the October report, OPEC in September, the organization has continued to increase oil production — 0.11 million barrels per day, up to 31,57 million barrels. Data excluding Iraq, OPEC production last month amounted to $ 27,429 million barrels per day (an increase of 29 thousand barrels). Thus, in August, OPEC has again exceeded its own stated quota for extraction to 30 million barrels per day.

The total volume of global oil production in September fell by 0.34 million barrels per day — up to 94,16 million barrels per day. Production growth in September was mainly observed in Iraq, Nigeria and the UAE. While production in Saudi Arabia showed the strongest decrease of 48 thousand barrels per day. The share of OPEC in global production in September amounted to 33.5% versus 33.3% in the previous month.

The message of OPEC led to the decline in oil prices. Analysts believe that the current rally is unlikely to be sustainable, because the market is oversaturated and forecasts for slow global economic growth this year and next year do not Bode well for oil demand.

“We expect that oil prices will show only modest improvement within the next six months, before conditions will be able to support a sustained recovery in the second quarter of 2016”, — quotes Agency France Presse words of analysts at Barclays.