Moscow. June 15. INTERFAX.RU – oil Prices stabilized on Thursday after falling to its lowest levels since November, by the end of the previous session, but fears of oversupply of crude oil on the world market continue to weigh on the market, writes MarketWatch.
The cost of the August futures for Brent crude on the London ICE Futures exchange to 8:15 Moscow time has risen to $0,05 (0,11%) to $of 47.05 per barrel. By the close of market on Wednesday, futures fell in price by $1,72 (3,53%) to $47 per barrel.
Futures price for WTI crude oil for July in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,02 (0,04%) to $of 44.71 per barrel. The contract fell $1.73 (3,72%) to $44,73 per barrel at the end of the previous session.
The fall in oil prices on Wednesday was encouraged by the data of U.S. Department of energy reporting less significant than expected reduction of oil reserves in the country. In addition, increased gasoline stocks, which was a surprise to experts, who expected the increase in demand for gasoline at the height of the driving season.
According to the energy Ministry, oil reserves in the U.S. last week fell by 1.66 million barrels. Citi Futures experts predicted reduction of stocks at 2-3 million barrels.
Gasoline inventories in the U.S. rose last week by 2.1 million barrels to its highest level in nearly three months, distillates – by 328 thousand barrels.
Oil production in the U.S. increased for the week by 12 thousand barrels per day (b/d) – to 9.33 million barrels per day.
According to the International energy Agency released Wednesday, oil production outside OPEC, mostly in the US will grow in 2018 to 1.5 million barrels per day (b/d), whereas global oil demand will increase only 1.4 million b/d.
“To me this is a serious Wake up call. I don’t see any indication that us producers of shale oil cut production, despite a renewed fall in oil prices,” says economist National Australia Bank fin Siebel.