Brent fell below $35 on the data from China and the OPEC production growth


Moscow. February 1. Oil prices lower on Monday on data on the reduction of business activity in China and increased production by OPEC, Bloomberg reported.

April futures on the mark Brent on London’s ICE Futures exchange at 18:28 Moscow time fell by us $1.35 (3,75%) to $34,64 per barrel. Previously, the drop came to $34,42 per barrel.

The contract prices for mark WTI for March trading on the new York Mercantile exchange (NYMEX) by this time has decreased by $1,48 (4,40%) to $of 32.14 per barrel.

It is noted that the number of open futures contracts on WTI crude oil as of January 29, rose to 1.84 million, a record for two years. Meanwhile, the number of “short” positions, i.e. bets the price drop to 26 January rose to 479,4 thousand, its highest level since October 2011.

As it became known on Monday, the official purchasing managers index (PMI) for the processing industry of China in January fell to 49.4 points from December’s 49.7 per item. Analysts polled by The Wall Street Journal had expected a smaller decline to 49.6.

In addition, according to Bloomberg, oil production by OPEC countries in January increased to 33,11 million barrels per day.

“The main negative factor for the oil market was the weak statistical data from China, which is a symptom of the deterioration of demand for fuel, – says the head of the futures division at Mizuho Securities Bob Yeager. – OPEC is also reluctant to reduce production, and supply constraints are expected on the market”.

Meanwhile, earlier oilfield services company Baker Hughes reported that last week the number of active oil wells in the US fell by 12 units to the lowest since 2010 498 units.