The cost of futures for oil of mark Brent with delivery in September in the course of trading on the ICE futures exchange Monday, July 25, fell to $44,95 per barrel, which is 1.62% below the closing level of the previous trading session.
The last time below $45 market price of a barrel of Brent fell 11 may 2016. Then the barrel of oil cost of $44.8.
Analysts attribute the decline in world oil prices with the commissioning of new drilling rigs, increased oil production in the US and a stronger dollar.
“Oil production in the U.S. rises for second consecutive week (9-15 July). The season of peak demand for gasoline in the country, linked with the summer holidays coming to an end, and therefore a further reduction of stocks in storage is questionable, especially due to seasonal maintenance at the refinery in August-September” — analysts of Sberbank CIB Dmitry Kolomytsyn and Iskander Lutsky.
In July, oil prices dropped about 10% but falling prices may pause at around $45 per barrel, experts believe. “At this level the main focus of speculative long positions on oil” — explain analysts of Sberbank CIB.
“This week, the quotes of Brent will remain sensitive to news related to the upcoming meetings of the US Federal reserve and Bank of Japan, as well as macroeconomic data in the United States,” — noted Kolomytsyn and Lutsk.
The decline in world oil prices has weakened the ruble. On Monday at the auctions at the Moscow stock exchange the dollar for the first time since the end of June rose above 65 rubles. At the peak of the value of American currency reached the level of 65,0325 RUB, down 15.25 kopecks. above the closing level on July 22.
“The correction in oil prices is a key driver for this movement. Negative for the ruble also remains a message last week that Vladimir Putin instructed the government to devise a plan of action in connection with the strengthening of the ruble. The tax period is gradually coming to an end and will no longer support the Russian currency in the near future”, — said the expert BCS Ivan Kopeikin.
He also stressed that additional pressure on the ruble will have soon the payment by Russian companies dividends to foreign investors. As a result, in the near future decline of the Russian currency, according to Kopeikin, can continue.
16:30 MSK cost of a barrel of Brent crude on the ICE futures exchange was $45,06, the dollar on the Moscow stock exchange reached 64,9125 Euro — 71,2475 RUB.