Oil prices lower amid oversupply

Oil prices lower amid oversupply

According to trading, futures price of Brent blend fell to 43,99 dollars per barrel, the price of light WTI – 41,05 USD.

MOSCOW, Nov 17. World oil prices decline on Tuesday amid ongoing oversupply in the oil market, according to AFP.

As of 20.13 GMT the price of January futures for North sea Brent blend fell by 1.29% to 43,99 dollars per barrel. The price of December futures for light WTI oil decreased by 1.65% to 41,05 USD per barrel.

“The oil market is quite saturated now,” said the analyst GAIN Capital Resaltada Fawad (Fawad Razaqzada) the Agency France Presse.

Earlier Tuesday, oil prices were rising amid geopolitical events. According to the Ministry of defense of France, French air force dealt a massive blow on positions of grouping “Islamic state” (IG) in the capital of the ar Raqqah city in Syria. Investors because of the bombardment of fear of disruptions of oil.

“The goal of the French bombing are far away from most of the major oil terminals, and consequently they are unlikely to cause any actual failures in the supply. Thus, oil prices continue to remain under pressure due to high supply and weak demand perspectives”, — the expert added.

In addition, investors await data on the dynamics of oil reserves in the U.S. for the week ended November 13, the U.S. Department of energy will publish on Wednesday. According to analysts, the index rose by 1.6 million barrels — up to 488,6 million barrels. A week earlier, the oil reserves in the U.S. rose by 4.2 million barrels, or 0.9%, to 487 million barrels.