Moscow. July 6. INTERFAX.RU – oil Prices rise on Thursday after a sharp fall at the end of the previous session, which became the highest for the month.
The cost of the September futures for Brent crude on the London ICE Futures exchange to 8:10 Moscow time rose by $0,32 (0,67%) – to $48,11 per barrel. By the close of market on Wednesday, futures fell $1,82 (3,67%) – to $47.79 per barrel.
Futures price for WTI crude oil for August in electronic trading on the new York Mercantile exchange (NYMEX) has increased by this time on $0,3 (0,66%) to $45,43 per barrel. The contract fell $1,94 (4,12%) to $45,13 per barrel at the end of the previous session.
For the WTI price to drop on Wednesday was the first after eight sessions of growth – the longest period of sustained growth since 2010. On Tuesday, when Brent ended the session weak decline, WTI trades were not held due to a holiday in the United States.
The fall in oil prices on Wednesday helped the increase of production in the OPEC countries, as well as information about the fact that Russia is not ready to go on to further production cuts, writes MarketWatch.
In June, OPEC increased oil production by 260 thousand barrels per day (b/d) compared with may. About half of the increase is due to growth of oil production in Libya and Nigeria, are exempt from participation in the agreement on the limitation of production.
On Wednesday the Agency Bloomberg with reference to anonymous sources in the Russian government reported that Russia intends to adhere to current agreements on the reduction of production in the OPEC countries+ by 1.8 million b/d by the end of March 2018.
According to sources, an even greater decline in production may send the markets the wrong signal, which can be interpreted as concerns that the current agreement is not enough to support the fuel prices.
“After the powerful rally over eight sessions, the market was stopped by the news that are not related to US, – said the head of Department of analysis of commodity markets Saxo Bank OLE Hansen. Is news about increase in production by OPEC countries and Russia’s unwillingness to cut production in the future.”