World oil prices continue to decline on the statistics from China

World oil prices continue to decline on the statistics from China


The cost of April futures on North sea petroleum mix of mark Brent has decreased on 0,25% – to 35.9 per barrel. The price of March futures for oil of mark WTI fell to 33,19 USD per barrel.

MOSCOW, 1 Feb. World oil prices continue to decline after the publication of unexpectedly weak economic performance of China, according to AFP.

As of 14.29 UTC + cost of April futures on North sea petroleum mix of mark Brent has decreased on 0,25% — to 35.9 per barrel. The price of March futures for oil of mark WTI fell by 1.29% to 33,19 USD per barrel.

The business activity index of the manufacturing sector of China in January fell to 49.4 from 49.7 points in December. The rate was the lowest since August 2012. The growth of the index above 50 points indicates that recovery in the industry, and a figure below 50 points — the stagnation or decrease of activity.

“To counteract the surge in oil prices in 2016 will be the weakening of the Chinese Renminbi, and continuing concerns over global economic growth, as well as large reserves of oil and fuels,” said analysts at BMI Research to Reuters. However, they expect a gradual increase in prices in the second half of this year.

The decline in oil prices contributes to the fact that the market does not expect the joint reduction in oil production by Russia and OPEC. “We do not expect to reduce production, unless there is a sharp deceleration in global growth that our economists do not predict,” — said, in particular, analysts of the Bank Goldman Sachs.

Earlier the head of Ministry Alexander Novak said that the decline in production in each country within 5% may be the subject of discussion at the planned meeting of OPEC in February, but you need General agreement. However, the Bloomberg after statements of the Russian Minister said referring to the delegates from OPEC that the meeting to discuss a possible production decline is not planned yet.