Oil trades mixed on fears of an oversupply of raw materials

Oil trades mixed on fears of an oversupply of raw materials


The world prices for oil was influenced by the report of the International energy Agency (IEA), according to which the price of oil will rise to 80 USD per barrel by 2020.

MOSCOW, 11 Nov. World oil prices on Wednesday show multidirectional dynamics on the background of the released forecast from the International energy Agency (IEA) on the cost of “black gold” by 2020, as well as the continuing fears of investors about the overabundance of raw materials on the world oil market, according to AFP.

As at 07.10 GMT the cost of December futures for North sea petroleum mix of mark Brent has grown on 0,06% — to 47,88 USD per barrel. The price of futures for WTI crude oil fell by 0.97% to 43,78 dollars per barrel.

The main influence on the prices renders the IEA report, according to which the price of oil will rise to 80 USD per barrel by 2020, despite an unprecedented decline in investments — more than 20%.

On the other hand, investors remained concerned about the overabundance of “black gold” on the market. “We continue to believe that the market will remain in surplus during the greater part of 2016, which probably will limit the price growth potential in the fourth quarter of 2015 and the first quarter of 2016”, — quotes Agency France Press the message of experts at Barclays Bank.

Expected in December, the increase in the base rate the fed can also affect the cost of raw materials, as it will lead to the growth of the American currency. Oil is traded in dollars, becomes more expensive for investors holding weaker foreign currencies. “We expect that the dollar will continue to strengthen as we approach a likely to raise rates”, — quotes Agency the message to Singapore’s United Overseas Bank.