Because of the growth in US production the price of Brent crude oil fell to $47,5

Moscow. July 7. INTERFAX.RU – oil Prices drop on Friday due to the increase in US production, which strengthened fears of investors caused by the previously released data on the growth of fuel production in OPEC member countries. Oil production in the U.S. for the week ended June 30 increased to 9,338 million barrels per day (b/d) 9,250 million b/d a week earlier, according to the Ministry of energy of the country. In annual terms, the rise amounted to 910 million b/d, or 10.8%.

The cost of the September futures for Brent crude on the London ICE Futures exchange to 8:19 MSK fell to $0,59 (1,23%) to $47,52 per barrel. Futures price for WTI crude oil for August in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,60 (1,32%) – to $44,92 per barrel. By the close of market on Thursday futures for Brent rose by $0,32 (0,67%) – to $48,11 per barrel, WTI – $0.39 (0.86 percent) to $45,52 per barrel.

According to the US Department of energy, commercial oil stocks declined last week by 6.3 million barrels to 502,9 million barrels, gasoline – by 3.67 million barrels, distillates – by 1.85 million barrels. The cumulative drop of reserves (13.4 million barrels) was the highest since September. Meanwhile, oil production by OPEC members is probably increased in June for a second straight month, according to estimates by Thomson Reuters Oil Research. OPEC’s oil exports rose in June for 450 thousand b/d compared to may – to of 25.92 million b/d.

Agreement OPEC+ is not enough to restore equilibrium in the oil market, this will require changes in US production, analysts say Morgan Stanley.

“In order to have a chance at a balanced market in the year 2018, the number of drilling in the U.S. should not increase, and the decline – about 150 plants. Given the current cost for this WTI should cost from $46 to $50 per barrel,” reads the report Morgan Stanley. Analysts at investment Bank downgraded the forecast price of WTI at the end of 2017 from $55 to $48 per barrel, for Brent – $57,5 to $50.5 per barrel.