Brent crude fell to $44 per barrel on stronger dollar

Moscow. November 23. Oil prices decline on Monday amid stronger U.S. dollar, as well as negative forecasts for the Venezuelan oil market, reports Bloomberg.

The cost of the January futures for Brent crude on London’s ICE Futures exchange to 8:40 (Moscow time) fell by $0,66 (1.48 per cent) to $44 per barrel. By the close of market on Friday, the futures price increased by $0,48 (1,09%) – to 44.66 per barrel.

Futures price for WTI crude oil for January in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time by $1.05 (2,51%) – to $40,85 per barrel. According to the results of previous trading day, the contract rose $0,18 (0,43%) to $41,9 per barrel.

The strengthening of the US dollar contributes to the weakening of not only oil but also other commodity markets.

Meanwhile, the oil Minister of Venezuela, Eulogio del Pino said yesterday that oil prices may fall to about $25 per barrel if OPEC does not take action to stabilize the market.

He reported that Venezuela has reached out to the remaining countries of the OPEC with an appeal to take measures that would help oil prices to rise to equilibrium level of $88 per barrel. This level of prices would allow the oil producers to cover the costs needed to develop new oil production capacity, he said.

According to him, Saudi Arabia and Qatar consider the proposal of the country.

Next OPEC meeting will take place on 4 December. The share of OPEC accounts for 40% of world oil production, oil production by the countries belonging to the organization exceeds the official quota of 30 million barrels per day for 17 consecutive months.

“The market demands a serious change in the policy of major oil producers, particularly Saudi Arabia, says an analyst CMC Markets in Sydney Rick Spooner. – Increase production of oil Iran will not become for investors a surprise, but the flow of Iranian oil into the market will negatively affect the prices”.

The Iranian oil Minister Bijan Namdar Zanganeh said earlier that the OPEC countries should make room for Iran’s oil supplies within the quotas of the organization.

Iran plans to increase production by 1 million barrels per day within 5-6 months after the lifting of sanctions.