LONDON, December 14. The cost of futures for oil of mark Brent with delivery in January 2016 on the stock exchange ICE in London fell by 2% to 36,98 per barrel, falling below $37 a barrel for the first time since December 2008.
In addition, the cost of futures for oil of mark WTI with delivery in January 2016 on the stock exchange ICE in London fell by 1.5% to $34,94 per barrel for the first time since February 2009, having overcome a mark of $35 per barrel.
The price followed demand
As informed earlier, the Minister of Finance of the Russian Federation Anton Siluanov, the demand and the price of oil in 2016 will keep the decline, in some periods the price of oil will fall below $30 per barrel.
“Over the past year, the international monetary Fund the fourth time revising the Outlook to the downside the global economy, this suggests that demand for oil will also fall. We see that now large amounts of oil reserves and the yield the following year on the oil market of new players – I mean Iran with capacity 1 – 1,5 million barrels a day, – all the evidence suggests that low oil prices in next year will dominate and it is possible that during certain periods it will be $30 per barrel, maybe less,” – said Siluanov.
Oil prices for 30 years
OPEC and quotas
Oil prices accelerated their decline after the OPEC meeting on December 4. According to the results of 168-th meeting in Vienna Ministers of oil of the OPEC has not taken a clear decision on production quotas because of the position of countries that are not members of the organization. Currently the volume of oil production by OPEC members is estimated to be 31-32 million barrels/day. The previous quota was 30 million barrels/day.
The ruble depreciates against the background of falling oil prices. So, the dollar has risen to the level 70,73 ruble 37 kopecks above the closing level yesterday. The Euro rebounded to the level of 77,55 of the ruble, rising by 15 cents.
In the us Congress these days is continuing work on the harmonization of budget fiscal 2016, says expert “BCS Express” albert koroi.
“The Senate and the House of representatives voted in the second half of last week for a temporary budget that would Fund the government until December 16. The Wall Street Journal reported that under the new budget, the Congress can by Wednesday to adopt a package of bills that contains a provision on the lifting of the embargo on the supply of crude oil abroad. Previously, the administration of the President threatened a veto on such a proposal, but sources say the White house may compromise”.
The results of the OPEC meeting led to the fall of oil prices in new York
The analyst indicates that the price difference between oil brands WTI and Brent since September have been smoothed out, whereas the earlier and the amplitude was quite high and the quantity was substantial.
The difference (spread) in the price of oil grades Brent and WTI declining from February. Then WTI has been cheaper than Brent by $8, but now the difference is slightly more than $2.
In addition, the lifting of sanctions with Iran and the forthcoming exit of the country on the world oil market also put pressure on oil prices. “The fall in oil prices is likely to continue this week. As stated at the weekend, the Deputy Minister of petroleum industry of Iran, sanctions against Iran will be fully lifted at the end of December or the first week of January. The probability that Iran will postpone the increase in oil exports because of low prices, is equal to zero”, – adds the analyst of IK “Veles Capital” Vasily Tanurkov.