Oil prices fell by more than a percent, while continuing yesterday’s trend. Market pressure put lingering concerns about the global oversupply.
Recall, Genscape reported yesterday that last week (July 19) oil reserves in Cushing terminal rose 725,176 barrels. Earlier this week, the US Department of Energy announced that crude oil inventories fell more than expected, but gasoline inventories unexpectedly rose. According to the report, during the week of 9-15 July crude oil inventories fell by 2.3 million barrels to 519.4 million barrels, while remaining at high levels by historical standards for a given period of the year. Analysts had forecast a decline of 2.1 million.
Analysts say that the oil surplus was transformed into a surplus of refined petroleum products.
Another factor was the rise in price of the dollar, which makes US dollar-denominated oil prices higher for holders of other currencies.
In addition, participants expect the Baker Hughes oilfield services company data on the number of US rigs. Recall, from 9 to July 15, the number of drilling rigs in the US increased by 6 to 357, an increase for the third consecutive week and the sixth week of the last seven. Renewed growth has spawned speculation that the country’s oil production may soon begin to grow, which in turn increased the concerns about the oversupply of oil.
The cost of the September futures for US light crude oil WTI fell to 44.06 dollars per barrel.
September futures price for North Sea petroleum mix of mark Brent fell to 45.42 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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