Oil prices dropped to the lowest level in two months


Moscow. October 27. Oil prices fell to the lowest level in the last two months before the publication of the data about stocks of energy carriers in the USA, reports Bloomberg.

December futures for Brent crude on London’s ICE Futures exchange to 17:53 Moscow time have fallen in price on $0,82 (1,72%) – to $46,72 per barrel. Futures price for WTI crude oil for December in trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,86 (1,96%) – to $43,12 per barrel.

The U.S. Department of energy will publish data on commercial stocks of fuel in the past week at 17:30 GMT on Wednesday. According to estimates of experts surveyed by Bloomberg, the oil reserves in the country grew by 3.5 million barrels.

Over the last four weeks oil stocks in the USA increased by 5% to 477 million barrels, the highest level for this time of year since 1930.

“I think we will see another significant increase of reserves, – said the head of the futures division at Mizuho Securities Bob Yeager. – Last week the report of the Ministry of energy indicated to increase oil reserves by 8 million barrels, the growth amounted to 7.6 million barrels. Soon stocks can rise to a historical high of 491 million barrels”.

In addition, the U.S. government in the years 2018-25 can sell to 8% of the strategic oil reserves (Strategic Petroleum Reserve. SPR), components of 695 million barrels. This proposal by the members of the U.S. Congress engaged in a deal regarding the country’s budget, the vote on which will take place on Wednesday.