Yesterday prices rose due to the high data demand in China. After the publication of the International monetary Fund’s forecast for growth in global GDP and the report of the International energy Agency, oil prices again began to decrease.
MOSCOW, 20 Jan. The world prices for oil on Wednesday again reduced, showing a negative trend after the publication of the Tuesday forecast from the International monetary Fund (IMF) on the growth of world GDP in 2016-2017, and the January report of the International energy Agency (IEA) to give added negative investor sentiment, linked to the persistence of oversupply in the oil market, according to AFP.
As at 08.29 GMT, the March futures price for North sea petroleum mix of mark Brent fell by 1.91% to of 28.27 per barrel. The price of March futures for WTI crude oil still exceeds the price of Brent crude oil, however, also lowered — on 2,32%, to 28,88 dollars per barrel.
The return dynamics of trading in the oil market at the auctions of environment to the negative performance after growth in oil prices a day earlier due to the new IMF forecast for growth in global GDP by 2016-2017, which caused concerns for the stability of the global economy. The Fund has lowered the rate on every year by 0.2 percentage points to 3.4% and 3.6% respectively.
In addition, the International energy Agency (IEA) in its January report on Tuesday said that does not exclude further decline in world oil prices on the background of the conservation in 2016, the excess of supply over demand. The Agency expects that for the third consecutive year the offer will exceed the demand by 1 million barrels a day.
Persist and investors ‘ concerns related to the arrival of Iranian oil on the market. Saturday, January 16, Iran got rid of the majority imposed on the country sanctions after confirmation of readiness of authorities to implement the program in a significant reduction of its nuclear potential. Market participants now fear that the Iranian side will be able in the next few weeks to increase deliveries of oil on 500 thousand barrels a day.
“Oil prices are at a level where fighting all the OPEC countries. The oil is sold for cash flow, not profit”, — quotes Reuters the head of the division of investment Ayers Alliance Securities Jonathan Barratt (Jonathan Barratt).