According to the results of the auction on December 9, January futures price of WTI on the New York Mercantile Exchange fell $0.35 (-1%) – up to $37.16 per barrel. January futures for Brent crude oil on the ICE exchange in London sank $0.15 (-0.4%) to $40.11. Today, oil is going up against the background of publication of fresh data on energy commodity reserves in the United States, according to which the country’s oil inventory declined by 3.57 million barrels last week. According to the forecast of experts polled by Bloomberg, the figure was to grow the 11th week in a row by 1.3 million barrels. At electronic auction in New York as of this morning the price of January WTI futures increased by $0.26 (+0.7%) to $37.42 per barrel. Brent crude oil rose by $0.37 (0.9%) per barrel that is $40.48.
Recall that according to the October report of OPEC, in September the organization continued increasing oil production – by 0.11 million barrels per day to 31.57 million barrels. Excluding data of Iraq, OPEC production last month amounted 27.429 million barrels per day (an increase by 29 thousand barrels). Thus, in August, OPEC once again surpassed its own stated quota for production of 30 million barrels a day.
The total volume of oil production in the world in September fell by 0.34 million barrels per day – down to 94.16 million barrels per day. Production growth in September was mainly observed in Iraq, Nigeria and the United Arab Emirates. At the same time production in Saudi Arabia showed the strongest decline – by 48 thousand barrels per day. OPEC’s share in the world production in September was 33.5% versus 33.3% in the previous month.
OPEC’s message led to a decline in oil prices. Analysts believe that the current rally is unlikely to be sustainable, as the market is saturated and the forecasts for slower global economic growth this and next year do not bode well for oil demand.
“We expect that oil prices will show only a modest improvement during the next six months before the conditions will be able to support a sustainable recovery in the second quarter of 2016”, – quotes France Press Agency Barclays analysts’ words.