Amid oversupply in the oil market the price of April futures on North sea Brent blend had dropped to 31.2 dollars per barrel, the price of March futures for light oil WTI fell to 30,16 USD per barrel.
MOSCOW, 26 Jan. World oil prices continue to decline amid continued excess raw materials on the world market, and in anticipation of data on oil reserves in the U.S., according to AFP.
As at 13.18 GMT April futures price for North sea petroleum mix of mark Brent has decreased on 0,48% — to 31.2 dollars per barrel. The price of March futures for WTI crude oil fell by 0.54% to 30,16 USD per barrel.
Oil prices rose last week in anticipation of new stimulus from Central banks in Europe and Japan, however, many analysts warned that the rally is unlikely to last long, as the demand for raw materials remains low.
Market participants also expect data on oil reserves from the U.S. Department of energy, which will be published on Wednesday. According to analysts, crude inventories in the country for the week ended 22 January, increased to 3,452 million barrels — up to 489,952 million barrels. The previous week, the reserves rose to 486,5 million barrels.
In addition, the negative impact on the prices continues to benefit from the decision of Saudi Arabia to maintain investments in energy projects. According to the Minister of oil of Saudi state company Saudi Aramco Khalid al-falih (Khalid al-Falih), the company continues to make investments in oil and gas, despite the reduction of costs.
Investors also await the outcome of the fed meeting, which ends Wednesday. They do not expect higher interest rates, but want to know how the latest developments in the world economy affect the projections of the controller. “The weakening of the world economy affects not only the fed but the ECB, which plans to take some action in March. It also means that the dollar may weaken after the meeting, and this will support oil prices,” said Reuters analyst Phillip Futures Daniel Ang (Daniel Ang).