Quotes oil futures are rising gradually, but remain near month low. The pressure on prices have news about a sudden drop in gasoline demand in the US and doubts about the possibility of achieving production levels at freeze agreement.
Office of US Energy Information Administration reported that gasoline demand – one of the most important indicators that supports the consumption of oil – fell in January for the first time in 14 months. Analysts at BNP Paribas note, oil may continue to fall, as the appearance of gasoline glut could further increase the global oversupply of oil. In the 2nd quarter oil demand traditionally declines, as refinery maintenance season begins before the summer period.
Recall, the world’s largest oil producers are due to meet in Doha on 17 April to discuss the production freeze, but given the increasing volume of oil production in Russia up to a maximum of 30 years, experts doubt that an agreement will be reached.
Iran, meanwhile, continues to increase the export of oil and says it will not participate in the production freeze. Today, Deputy Oil Minister Marzieh Shandala said that Iran does not plan to participate in the meeting in Doha. Meanwhile, a spokesman for Kuwait’s OPEC Nawal al-Fuzaya said that oil-producing countries following the meeting in Doha may freeze oil production at the level of February. According to her, the oil producers may agree to freeze without the participation of Iran in the negotiations, because they have no other choice. Also, Nawal al-Fuzaya added that, according to its estimates, the average of Brent oil will be traded in the range $ 45- $ 60 per barrel in the second half of this year.
In the course of trade is also affected by the expectations of today’s publication of data on US oil inventories from the American Petroleum Institute and tomorrow’s report from the US Department of Energy. Analysts expect that the Ministry of Energy reported an increase in inventories by 3.3 million barrels last week.
WTI for delivery in May rose to $35.75 a barrel. Brent for May rose to $37.80 a barrel.
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