The price of oil Brent for the first time since April fell below $43

In the course of trading on Thursday on the stock exchange ICE cost of a barrel of Brent for the first time since 20 April 2016 fell below $43. At a minimum futures price for Brent oil for delivery in September 2016 fell to $42,88 by 1.35% below yesterday’s closing level.

Analysts attribute the fall in oil prices with the release of the data about growth of stocks of oil in the United States. According to released yesterday to the us Department of energy, in the week from 16 to 22 July, commercial oil stocks in the USA increased by about 1.7 million barrels, or 3.2%, from 519,5 million to 521,1 million barrels. Earlier, analysts predicted the decline in commercial stocks of about 2.2 million barrels.

“Data on stocks was another signal that the oil market could return to overstocked condition. We believe that after five days of decline, the oil can try today to stabilize in the neighborhood of $43,5-44/barrel. however, given the lack of interest of speculators and supported by a relatively strong dollar downside risk to $42/bbl. remains relevant”, — the analyst PSB Ekaterina Krylova.

In the report of Raiffeisenbank a negative factor for oil quotations related also talks Iraq with Exxon Mobil and PetroChina to develop two fields to maintain the production level of 4.8 million barrels. a day. “From the point of view of technical analysis, last week there was an exit from the descending triangle with the formation of the “bearish” trend”, – experts underline the Bank.

The fall in oil prices has given new impetus to the weakening of the ruble. In the course of trading on the Moscow exchange the dollar reached the level 66,45 rubles., which is 47,32 kopecks. above the closing level Tuesday. Simultaneously, the Euro rose to RUB 73,68, which was the highest value since mid-June 2016.

“The ruble for too long remained stable, not reacting to the dynamics of oil prices, so now the situation just comes to a certain norm. Given the state of the oil market and expectations for rate of the CBR, the ruble will continue to show weakness,” believes the first Deputy Chairman of the management Board of the Bank “Ugra” Yuri Melnikov.