Oil price hike continues on Wednesday after the publication of statistics from the American Petroleum Institute. According to the latest research, oil reserves in the US have decreased over the past week, which lasted until August 7. This encouraged the raw materials market, which immediately affected prices, which experienced significant support.
The price of Brent crude oil futures contracts for October delivery on the London trading floor increased by 0.34% or $ 0.15, which pushed it to $ 44.65 per barrel. Note that Tuesday's trading also ended very successfully after increasing by 1.1% or $ 0.49, and its price at the close of the session was $ 44.5 per barrel.
The price of futures contracts for light crude oil WTI on the electronic trading floor in New York also increased by 0.22% or $ 0.09. Its current level has moved to the level of $ 41.70 per barrel. Bidding on Tuesday ended not very well after declining by 0.8% or $ 0.33, which forced the mark to drop to $ 41.61 per barrel.
According to data provided by the American Petroleum Institute, the level of crude oil reserves in the United States last week fell by 4.4 million barrels. At the same time, a drop was also recorded in the gasoline sector which amounted to 1.3 million barrels. Distillates went down by 2.9 million barrels. On the other hand, in the strategically important territory of the terminal in Cushing, there was an increase in oil reserves by 1.1 million barrels.
However, official data from the US Department of Energy has not yet confirmed the information received, they are expected to release the data Wednesday evening. Nevertheless, this did not stop investors from getting a little enthusiastic.
Most analysts point out that the level of reserves will still be below the previous values, namely 4.7 million barrels. Gasoline stocks will also fall by about 2.1 million barrels, and distillates will fall by 100 thousand barrels.
While the markets are in anticipation of official statistics on reserves, the US Department of Energy released a report with preliminary forecasts, which showed the movement of oil prices in the second half of this year. It is assumed that Brent crude oil will be able to keep the price around $ 43 per barrel this year, and will increase it to $ 50 per barrel next year. Last month, the forecasts were much modest: the price of Brent oil in the second half of the year was estimated at $ 41 per barrel, while its level for the next year was not revised.
Among other things, the EIA also analyzed the extraction of raw materials in the United States. According to preliminary data, there will be a reduction in hydrocarbon production by about 370 thousand barrels per day. Thus, production will be at the level of 11.3 million barrels per day. Last year's figures were slightly higher with 12.2 million barrels per day. But the forecast for next year has been slightly adjusted to 11.1 million barrels per day instead of 11 million barrels.
The decline in production will be justified in the face of declining demand for raw materials. Thus, it is expected that next year global demand will become lower and will consolidate around 92.9 million barrels per day.
Meanwhile, there is also plenty of negative news on the black gold market. Investors are increasingly worried about the fate of America's fiscal stimulus program every day. The country's legislators have yet to come to a common decision. Moreover, the disagreements are growing stronger, and time is running out. If a compromise between Republicans and Democrats is not reached soon, market prices will begin to experience serious pressure and move back.
