Oil fell to the lowest in three weeks

Moscow. June 6. INTERFAX.RU – oil Prices are declining on Tuesday after falling to the lowest level in three weeks on Monday in anticipation of the weekly report of the U.S. Department of energy.

The cost of the August futures for Brent crude on the London ICE Futures exchange to 8:09 Moscow time fell by $0,21 (0,42%) – to $to 49.26 per barrel.

Futures price for WTI crude oil for July in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0.23 (0.49 percent) to $of 47.17 a barrel.

Following the session on Monday, Brent fell 48 cents to $49,47 per barrel, U.S. crude fell 26 cents to $47,40 per barrel, the lowest since may 10.

The market reacted to the break in diplomatic relations between some Arab countries and Qatar. First, prices jumped on fears of supply disruptions, but then proceeded to decline as the experts pointed out the minor risks of such a scenario. In addition, a number of economists have pointed to the risk that due to political differences among members of the OPEC agreement to limit production may be disrupted.

Report US Department of energy will be released Wednesday at 17:30 Moscow time. The experts generally expect that it will indicate a decrease in oil reserves in the country by the end of the ninth week in a row, by 3.5 million barrels.

However, production in the United States has steadily increased since the beginning of the year, which partially negates the efforts of the OPEC on reduction of excess supply in the market.

“Fuel reserves in the United States have been decreasing, but production continues to grow, says Fat Prophets analyst David Lennox. – If OPEC continue to comply with the terms of the agreement, WTI will return to the range above $50 a barrel.”