Oil futures fell moderately today, from the 8-week high. A stronger dollar also weighed on prices – today it has grown by 0.5 percent against a basket of currencies.
“We argue that the improved fundamentals are not the key reason for the recent price rebound”, – Morgan Stanley said in a note -. The demand for crude oil is anemic, gasoline demand has slowed down around the world, and China’s crude oil imports is likely to slow in the second half of this year. “
This week’s data on petroleum inventories in the United States, as well as speculation that the leading oil-producing countries can take steps to stabilize prices, have supported the prices. Recall that the meeting of OPEC member states will be held at the end of September 2016, and a number of countries have already expressed interest in the resumption of negotiations on the limitation of production. Former chairman of OPEC Chakib Khelil suggested that the world’s largest oil exporters may still agree to freeze production as Saudi Arabia, Iran, Iraq, and Russia extract the highest possible volume of oil or close to it.
However, analysts note that the current price rally may lead to the preservation of oversupply as manufacturers can increase production volume. Later today, the focus will be the publication of the Baker Hughes data on the number of US rigs. The previous report showed that the number of operating drilling rigs is growing.
The cost of the October futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 48.80 dollars per barrel.
October futures price for North Sea petroleum mix of mark Brent fell to 50.47 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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