The price of a barrel of Brent crude on the ICE stock exchange for the first time since March 16, dropped below $40. At a minimum the price of a barrel reached $39,76 that on 1,75% below the closing level yesterday.
Before the decline in oil prices began after the publication of the U.S. Department of energy data on the rapid growth of commercial stocks of crude oil in the U.S. oil storage tanks. For the week from 11 to 18 March, they grew by 9.4 million barrels and reached the level of 532,5 million barrels, which is a record figure for this time of year.
“A significant reason for the growth of the markets, especially on the background of gradually escalating rhetoric of the U.S. Federal reserve. The rise in oil prices is limited risk of increasing shale production in the US, while uncertainty in relation to the April meeting of oil-producing countries,” — said the Deputy chief of analytical management of Bank “Zenith” Vladimir yevstifeev.
Following the fall in oil prices continued to decline and the ruble. During today’s trading on the Moscow exchange, the dollar has again exceeded 69 rubles., rising to the maximum 69,253 RUB 51.6 kopecks. above the closing level yesterday.
Simultaneously, the Euro rose again above 77 rubles, reaching the level of 77,427 RUB 61.6 kopecks. above the closing level yesterday.
“Quotes Brent fell back that puts pressure on the ruble after statistics on fuel reserves in the United States. Yes, the ruble will have support from the exporters under the sales tax, but it is secondary compared to oil and sentiment in global markets. Ruble locally can finish the week closer to 69 rubles/$. At the end of the week, the trading activity will be reduced by the background of the feast of Passover [celebrated in the USA on 27 March],” said analyst Nordea Bank Dmitry Savchenko.
By 12:40 Moscow time the price of a barrel of Brent was $39,88, the dollar came back to around 69,2 roubles, the Euro rate of 77.4 rubles.