The cost of oil futures fell slightly, stepping back from seven-month highs as investors took profits and weighed the prospects of oil production due to the price increase in the area of $ 50 per barrel. Pressure on the quotes is also providing US dollar strengthening. However, disruptions in oil supplies from various regions of the world restrain the fall in prices.
Despite the recent decline, oil is almost 90% higher than the February 13-year low. The increase from February to May was the most rapid in February-May 2009. “Oil markets recover balance faster than expected, we have not seen any increase in global stocks in 2017, for the first time in four years.” – Said UBS analyst Giovanni Staunovo.
Investors are waiting for the speech of US Fed Yellen, from which hope to hear signals on further actions of the Central Bank. The increase in interest rates would mean higher US dollar exchange rate, the higher the dollar will lead to more expensive oil, that could trigger the sale of commodities.
Focus today will be data Baker Hughes oilfield services company in the United States in the number of drilling rigs. Recall, at the end of the working week was reduced slightly ended May 20 – 2 units, and amounted to 404 units. In annual terms, a decline of 481 units or 54.4%. “Baker Hughes data will be very important The big question is whether the trend of reducing the number of drilling will be developed, as in the past few months, oil has risen.” – Said Michael Poulsen, an expert Global Risk Management.
Gradually, the focus switches to the OPEC meeting, which is scheduled for June 2nd. Discussion will focus on the possibilities of raising prices and stabilize the market. “We do not expect that OPEC will come to some sort of agreement, and the Gulf countries are likely to increase production”, – said the UBS. – Elimination of supply disruptions and rising OPEC production may increase the excess supply, and prices could go back to $ 40. “
WTI for delivery in July fell to $49.39 a barrel. Brent for July fell to $49.30 a barrel.
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