Oil prices rose more than 2 percent after falling by about $ 4 per barrel last week, but then went back into the red zone, as investors remain concerned about global oversupply.
Due to oversupply, Goldman Sachs note that in the near future should not expect the oil price recovery. “We expect that oil prices will remain in the area of $ 45 to $ 50 per barrel, at least until mid-2017, but it is necessary to take into account the existing risks”.
“The market is continually focusing on oversupply, the bearish trend seems to be difficult to change in the near future”, – said Hans van Cleef, ABN AMRO.
It is worth emphasizing that Brent oil futures fell nearly 21% from the highs reached in early June as expectations of increased exports from the Middle East and North Africa have raised concern that an excess of oil will reduce demand from refineries.
Some support was given from the weakening dollar, which potentially increases demand for oil, making it cheaper for buyers using other currencies.
Market participants are also waiting for data on US petroleum inventories. Later, a report of the American Petroleum Institute (API) will be published and official data from the Ministry of Energy will be known tomorrow. It is estimated that the Ministry of Energy reported that oil and gasoline declined last week to 1.75 million and 1 million barrels respectively, but nonetheless remained at very high levels for the current season.
The cost of the September futures on WTI fell to 39.92 dollars per barrel.
September futures price for North Sea petroleum mix of mark Brent fell to 41.55 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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