Oil trades mixed on fears of oversupply

Oil trades mixed on fears of oversupply


The mood of investors is influenced by risks from uncertainties and geopolitical tensions after Friday’s terrorist attacks in Paris.

MOSCOW, Nov 17. Oil prices on Tuesday demonstrated a multidirectional dynamics on the background of geopolitical concerns after the terrorist attacks in Paris on one hand and concerns regarding the possible preservation of the excess supply of raw materials, according to AFP.

As at 07.34 Moscow time the cost of January futures for North sea Brent blend was down 0.37% to 44,62 dollars per barrel. The price of December futures for light WTI oil increased by 0.06% to 41,91 USD per barrel.

With one hand on the mood of investors is influenced by risks from uncertainties and geopolitical tensions after Friday’s terrorist attacks in Paris. The U.S. and France, as expected, after these events, will increase efforts to combat grouping “Islamic state” (IG).

But on the other hand, investors fear for the prospects of slow demand for raw materials. So, according to the International energy Agency (IEA), growth in world oil demand in 2015 will accelerate to five-year high of 1.8 million barrels per day, but in 2016, growth will slow to just 1.2 million barrels per day.

“High rates of supply in the market, the large stocks of raw materials in the OECD countries and the lack of real threats to oil facilities in the middle East do not give geopolitical concerns to deliver real growth in oil prices after the terrorist attacks in Paris”, — quotes Reuters the words of analysts from BMI Research.