Oil prices rose modestly today, reaching the highest level in eight months, helped by the US dollar depreciation and a reduction in oil production in Nigeria due to a series of attacks on oil installations.
According to one source, production of Bonny Light crude oil in Nigeria declined by 170,000 barrels per day after the attacks on the oil infrastructure.
Oil prices jumped nearly doubled since January, when it reached the lowest level since the end of 2003, which was mainly due to the unplanned interruptions in oil production in countries such as Canada, Venezuela, Libya and Nigeria. Sentiment in the market has also improved against the background of decline in US shale oil production. However, as prices have reached a level where drilling activity is profitable for some companies, the number of rigs may begin to grow and the reduction of production volumes in the United States may slow down.
Today, the American oil service company Baker Hughes reported that the number of active drilling rigs in the world fell in May by 19 units, or 1.3%, to 1 thousand. 405 to 1 thousand. 424 in the previous month. Compared to May 2015 the number of drilling rigs decreased by 722 units. The number of oil installations in North America at the end of May amounted to 450 (-28 per month), while the number of oil-producing plants operating in the US fell by 29 units to 408 units. In Europe, it became 5 oil rigs more in the Middle East – at 7, in the Pacific region – 11, in Latin America – 15 fewer towers.
In the course of trading is also affected by expectations the publication of weekly data on US petroleum inventories. Today its report on stocks of the American Petroleum Institute will publish and tomorrow will leave government data. Analysts expect the US Energy Department reported a drop of oil to 3.5 million. Barrels. Yesterday Genscape industry group reported that for the week of June 3 at oil terminal in Cushing fell by 1.0 mln. Barrels.
WTI for delivery in July rose to $50.12 a barrel. Brent for July rose to $51.13 a barrel.
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