Recent data Baker Hughes published on Friday evening, showed that the number of rigs in the U.S. increased by one unit, ending a three-month decline, during which the number of rigs on a weekly basis decreased, writes The Wall Street Journal.
In March, oil prices rose compared to February lows almost 50% amid expectations that low prices will limit production while maintaining the oversaturation of the market, the newspaper reminds, noting that the data on drilling has not justified these hopes.
The WSJ writes that, although the number of rigs in the U.S. declined by 50% from last year, their performance fell more than 7% and is still above 9 million barrels./day.
Friday night quotes the may Brent crude futures at the London electronic exchange ICE fell from the day high of $42,45 per barrel. up to $41,20 per barrel. With the opening of trading on Monday, the fall continued. Brent has lost 0,97% to the closing price and at 12:20 Moscow time cost $40,80 per barrel.
The newspaper reminds that the growth Outlook in recent weeks has fuelled expectations that major oil exporters will join the initiative of Saudi Arabia, Russia, Qatar and Venezuela for the freezing production at the January level. Another discussion of this draft takes place on 17 April in Qatar.
Another factor that influenced the rise of oil prices has been the US Federal reserve’s decision to keep rates on hold and the active rejection of their increase this year, writes the WSJ.
Analysts at Bank of America Merrill Lynch warned that the recovery in oil prices will not be “linear” as opposed to their fall, the publication adds. According to him, the Bank expects that the cost of America’s oil will drop by the end of September as a result of reduced demand for gasoline and diesel fuel and the refinery closure on fall prevention.
last week brought the analysts ‘ opinion that the current rise in oil prices will be short-lived, as U.S. shale companies will increase production as soon as the increased value will begin to cover their costs.
“If prices continue to rise, U.S. shale producers will quickly respond to this trend,” warned Vice-President of the consulting firm IHS Energy Jamie Webster. “Premature price rally before the market will experience a shortage, will not bring any benefit,” said analyst new York division of Goldman Sachs Jeffrey Currie. Restore “can save American manufacturers” that “will limit the reduction in production,” said analyst at UBS Group in Zurich Giovanni Taunovo.