Moscow. December 18. The weak Brent oil rises in price on Friday, as WTI continues to fall amid rising energy reserves in the U.S., as well as interest rate hike by the fed, Bloomberg reports.
The cost of the February futures for Brent crude on London’s ICE Futures exchange to 8:41 MSK rose to $0,11 (0,3%) to $37,17 per barrel. By the close of market on Thursday, the futures price fell $0.33 (0,88%) – to 37,06 per barrel.
Futures price for WTI crude oil for January in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time for us $0.13 (0,37%) – to $34,82 per barrel. According to the results of previous trading day, the contract fell by $0.57 (1.6 percent), to $34,95 per barrel.
The validity of the January contract on WTI expiring on December 21. February futures traded at $36,16 per barrel, $0,11 (0,3%) below the level of the previous session.
Since the beginning of this week, WTI fell by 2.3%, the contract terminates by falling prices for the third consecutive week.
Data the U.S. Department of energy, published December 16, pointed to the growth of oil reserves in the country until 490,7 million barrels – high for this time of year since 1930.
Meanwhile, the fed’s decision for the first time since 2006, lifting the base rate provoked a stronger dollar that reduced the appeal of investments in commodities.
“A key factor this week is the stronger dollar amid the continued reluctance of oil producers to take action in response to the excess supply of oil on the world market, – the analyst CMC Markets in Sydney Michael McCarthy. We just don’t see the declining production, which would be normal during such a fall of prices.”
Experts at Goldman Sachs Group noted that there is a “high risk” even lower levels of oil prices may need to fall to near $20 per barrel before production would begin to decline to balance the global market. “We continue to see a high risk that prices may decline even more if the reserves will continue to grow,” said Goldman Sachs analyst Damien Courvalin.