Oil prices in early trading Wednesday, 24 February, fell by more than 5% after Saudi Arabia announced that it is not going to reduce oil production volumes. It is reported Reuters.
On Tuesday, the Minister of petroleum and mineral resources Saudi Arabia Ali al-Naimi stated that the Kingdom will not cut oil production because they do not believe that other countries, even if they promised to reduce oil production. Along with Saudi Arabia, Iran also made it clear that he has no interest in freezing the level of oil production, calling the proposal of Russia and OPEC “ridiculous”.
Oil of mark Brent with deliveries in April, according to 5:20 GMT, is traded at $32,91 per barrel (-5,3%). The barrel of oil WTI give $31,41 (-6,3%), according to AFP.
Reuters notes that falling oil prices were the result of explicit sutstvie progress in cooperation between members of OPEC about the freezing or the reduction of oil production to stabilize oil prices.
“The price of crude oil reached its highest level <…> the Lack of geopolitical cooperation will keep the level of production of OPEC countries at the highest level”, — quotes Agency review ANZ Bank.
In addition, the American petroleum Institute (API) reported that weekly inventories rose by 7.1 million barrels (up to 506,2 million barrels). While analysts expected that stocks will grow by 3.4 million barrels. Later on Wednesday, official data on oil reserves will give voice to the energy information Administration of the United States.