Brent crude fell to $56,17 after a sharp rise the day before


Moscow. September 21. INTERFAX.RU – the price of oil is weakly falling on Thursday after a significant jump on the results of the previous session due to increased tensions between the US and Iran, as well as expectations of new signals from OPEC.

The price of November futures for Brent crude on the London ICE Futures exchange to 8:30 Moscow time on Thursday fell to $0,12 (0,21%) – to $56,17 per barrel. At the end of the previous session, the contract rose $1.15 m (2,09%) – to $56,29 per barrel.

Futures price for WTI crude oil for November in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,03 (0,06%) to $50,66 per barrel. On the eve of the value of these contracts increased by $0,79 (1,58%) – to $50,69 per barrel.

Traders await comments from representatives of oil-producing countries regarding the possibility of further restrictions on oil production. On Friday in Vienna will host a Ministerial meeting of OPEC, which will discuss the implementation of the existing agreement to reduce production.

In recent weeks some of the members of OPEC, including Iraq, were given to understand that open to extend the agreements on limitation of production, due to expire early next year.

Experts, however, don’t expect any decision in this respect may be taken before the next formal meeting of OPEC, scheduled for November.

The increased tensions in relations between the US and Iraq have also supported oil prices. “There is a lot of talk about conflict of trump and the Iranian President Rouhani – said CMC Markets analyst Colin Cisinski. – It could stir up tensions in the middle East”.

Meanwhile, the U.S. Department of energy released Wednesday showed that oil stocks in the United States last week jumped to 4.59 million barrels. Experts on average had expected a larger rise of 10.1 million barrels.

Meanwhile, gasoline inventories fell by 2.13 million barrels and reserves of distillates fell by 5.69 million barrels.

Analysts polled by S&P Global Platts, predicted the increase in oil reserves by 2.4 million barrels, a reduction of stocks of gasoline of 800 thousand barrels and distillates up 1 million barrels.

Source