The price of Brent crude oil fell by 4%


The cost of Brent oil in the course of trading on the stock exchange ICE fell by nearly 4.5%. At a minimum the price of a barrel fell to $47,86 is the lowest price since early July 2016, and by 4.47%, or us $2.24 below the previous closing of the auction.

Analysts attribute the fall in oil prices with the increase in the number of drilling rigs operating in the U.S. and growing production in Saudi Arabia and Nigeria, which managed to ramp up production after the completion of rehabilitation works on infrastructure damaged by militant attacks.

Data on the production growth in Nigeria appeared after the release of weekly data on the return into operation in the United States the maximum number of rigs since the beginning of this year against the expected stabilization of oil prices. Meanwhile, demand for gasoline in the United States were lower than expected, despite lower prices and the ongoing vacation season,” noted analysts at Sberbank CIB Dmitry Kolomytsyn and Iskander Lutsky.

The report Commerzbank also stresses that the pressure on the market have a surplus of gasoline and shortage of space in storages of fuel in the United States. “A few petrol tankers are unable to offload in the port of new York, and they were forced either to anchor near the shore, or to move toward the Northern Gulf coast. Refineries can reduce the processing of oil, which will lead to growth of oil reserves”, — the report says Commerzbank.

In the next two days the data about dynamics of stocks of oil and oil products in US stores must publish the American petroleum Institute and energy information Administration of the United States.

The fall in oil prices led to the depreciation of the ruble. During today’s trading the dollar on the Moscow stock exchange rose to 64,6875 Euro — 71,985 to RUB.

18:25 the price of a barrel of Brent crude on the ICE futures exchange was $47,92, the dollar on the Moscow stock exchange reached 64,645 Euro — 71,71 RUB.