Cost is reduced by news of record high raw material extraction in Iraq in December. The negative influence on quotations has rendered the decision of Saudi Arabia to maintain investments in energy projects.
MOSCOW, 26 Jan. World oil prices falling amid fears of growing glut of the fuel on the market, Brent is trading at $ 30, American WTI fell to 29.7 per barrel, according to AFP.
As of 0.40 Moscow time the March futures price for North sea petroleum mix of mark Brent fell on 6,74% to 30.01 per dollar per barrel, the price of March futures for WTI — to 7.77% to 29,69 per barrel.
Prices are falling amid news of record high oil production in Iraq in December. The negative influence on quotations has rendered 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 is currently spending as much as before, with falling oil prices, signalling that he will not give up in their struggle with competitors; the company set its strategy in response to cheap oil.
At the end of last week the cost of fuel grew by 9-10% on expectations of new stimulus from Central banks in Europe and Japan and hopes that the Blizzard in the Eastern United States will boost fuel demand. However, many analysts warned that the rally is unlikely to last long, as global production continues to exceed demand.