Oil futures fell by about 1%, losing previously-earned positions, move coused by concern about the world’s largest oil reserves.
“The fundamental background in the oil market is still bearish, – said Commerzbank analyst Carsten Fritsch -. Every increase in prices driven by speculation and optimism, not the actual tightening of supply of raw materials.”
Yesterday the US Department of Energy reported the first increase in oil reserves for six weeks. The report showed that commercial crude oil inventories for the week ended October 7 rose by 4.9 million barrels, or 1% – to 474 million barrels. Analysts had expected the index to increase by 1.75 million barrels. However, gasoline stocks in the US for the week fell by 1.9 million barrels, or 0.8% – to 225.5 million barrels. Analysts expect that figure will be reduced only by 1.5 million barrels. Distillate stocks fell by 3.7 million barrels, or 2.3% – to 157 million barrels. Experts forecast a decline of 1.6 million barrels.
Some support has recently voiced OPEC’s plan, the purpose of which is to reduce oil production to 32,5-33 million barrels for balancing supply and demand, and to support prices.
Investors are also preparing for Baker Hughes data on the number in the US rig. Recall, according to the results of October 7, the number of drilling rigs in the country has increased by 2 points, or 0.38%, to 524 units. The number of oil rigs has increased by 3 units, or 0.7%, to 428 units, that is, up to February’s highs. The number of gas-producing plants has decreased by 2 points, or 2.08%, and amounted to 94 units.
The cost of the November futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 49.98 dollars per barrel on the New York Mercantile Exchange.
November futures price for North Sea petroleum Brent fell to 51.61 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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