The cost of oil futures declined moderately, departing from the multi-month highs, which was caused by the publication International Energy Agency’s report.
The IEA report says that world oil supply rose in September, but it was noticed the decline in world oil reserves. “Forecast of supply and demand suggests that the market itself will remain in a supersaturated state during the first half of next year if OPEC will stick to the set threshold production, market re-balancing can occur more quickly”. In addition, the IEA revised its forecast for oil demand in 2016 to 96.3 million barrels a day, which implies an increase of 1.2 million.
According to Goldman Sachs, oil prices may return to $ 43 a barrel if the oil-producing countries fail to agree on production cuts, as the excess supply in the market will continue for the 4th quarter of 2016. Experts believe that despite the “increased likelihood of” the conclusion of the planned agreement on limiting production OPEC and producers outside the cartel, including Russia, any reduction in its volume will not be enough to balance the market in 2017. “The increase in production in Libya, Nigeria and Iraq, reducing the chances that such an agreement would lead to balancing the market in 2017.”
The cost of the November futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 50.74 dollars per barrel on the New York Mercantile Exchange.
November futures price for North Sea petroleum mix of mark Brent fell to 52.20 dollars a barrel on the London Stock Exchange ICE Futures Europe.
The post Oil resumed the decline appeared first on forex-analytics.press.