The cost of futures for oil of mark Brent with delivery in January 2017 on the stock exchange ICE fell to $46,53 per barrel by 3.34% below the closing level of the previous trading session. Below $47, the price of a barrel of Brent fell for the first time from 28 September 2016.
The fall in oil prices occurred after the data of the energy information Administration of U.S. Department of energy (EIA), indicating a sharp increase in the volume of commercial oil reserves in the country. According to authorities, during the week from 22 to 28 October, the reserves grew by 14.4 million barrels.
According to the EIA, the reserves were even more than that a day earlier predicted by the experts of the American petroleum Institute (API). According to their calculations, the total volume of commercial stocks over the past week has increased “only” 9.3 million barrels. However, and this was enough to trading on the 1st November, closed in the “red zone”, as analysts previously predicted that reserves growth will not exceed 1-2 million barrels.
Today it became known that the level of oil production in Russia, leading the negotiations with OPEC about the possible freezing of production reached a new historical record. In October 2016, its average daily volume exceeded 11.2 million, only slightly less than the absolute maximum of the times of the USSR.
“Because of disagreements in OPEC, and the growth of the world’s oil reserves, it is possible that the price of oil stays below $50 a barrel in the short term to one month, and a turning point in pricing will be the OPEC meeting in late November. In case of failure, the price of oil might fall back to $45 a barrel because under these conditions the growth of production will not allow to balance the market until the second half of 2017,” the report notes IK “Veles the Capital”.
According to analyst PSB of Catherine Krylova, in the absence of positive news, oil prices in the near future risk to fall to $45-46 per barrel.
The fall in oil prices has led to a sharp rise in the dollar and Euro on the Moscow stock exchange for a few minutes, they grew by more than 30 kopecks. At a maximum the value of the dollar today reached the mark of RUB 63,7975 (+0,75% against yesterday’s closing level), the value of the Euro to RUB 70,8825 (+1,26%).
To 18:00 MSK cost of a barrel of Brent on the ICE stood at $46,59, the dollar on the Moscow stock exchange reached 63,76 Euro — 70,8275 RUB.