Oil was becoming cheaper yesterday due to the data on an increase in production by OPEC in November to the highest level in more than 3 years.
Following the auction on December, 10 of January WTI futures price on the New York Mercantile Exchange NYME fell by $ 0.40 (-1.08%) to $ 36.76 per barrel.
January futures for Brent crude oil on the ICE exchange in London sank $ 0.38 (-0.95%) to $ 39.73.
Today oil continues to lose in price. In electronic trading in New York this morning the price of January WTI futures fell by $ 0.29 (-0.79%) to $ 36.47 per barrel.
Barrel of Brent crude oil fell by $ 0.26 (-0.65%) to $ 39.47.
Recall as the events unfolded. In the evening, December 8 Brent oil price collapsed to $ 39.92 per barrel. Thus, the price of North Sea oil fell to an eleven-year low. Last time Brent crude oil cost less than $ 40 in December 2004.
The price of oil in the world has a general downward trend for the second year in a row. Since July 2014, when quotations reached $ 115 per barrel, oil on world markets has lost more than half of its price.
According to the forecasts of the World Bank, the average price of oil in 2016 could be reduced by $ 10 due to the removal of international sanctions against Iran. In the Russian Central Bank a pessimistic scenario is considered in which the price of oil would be “very below” $ 40 per barrel.
Analysts at Goldman Sachs Bank suggest that in March 2016 the price of oil could reach the level of its cost, estimated at $ 20 per barrel. However, Fitch credit rating agency believes that in 2016 the price of Brent crude oil barrel will rise to $ 55, in 2017 – to $ 65.
Connor Campbell of Spreadex said on this occasion: “There are almost no signs on the horizon indicating that the current fall in commodity prices will be stopped. Perhaps tomorrow the situation may be even worse as published on Wednesday morning data on Chinese inflation could easily be below expectations, judging by today’s data on the trade balance. ”
Let us remind you that in the next months the price of oil would fall to 20 per barrel, say the recent forecasts of analysts in Goldman Sachs.