The price of crude oil went up on Tuesday which was swayed by the news on the release of the vaccine against coronavirus infection. In addition, market participants continue to track statistics on the level of crude oil reserves in the United States of America. The official data of which is scheduled to be released by the end of this week. Experts' preliminary forecasts expect a reduction in stocks of raw materials by 2 million barrels. If everything happens as reflected in the forecasts, then this will be the sixth decline in a row.
The price of Brent crude oil futures contracts for delivery in November on the trading floor in London went up by 1.04% or $ 0.47 on Tuesday morning which moved it to the price level of $ 45.75 per barrel. Note that Monday's trading went negative for the brand with a significant decrease in its value by 1.2% or $ 0.56.
The price of futures contracts for WTI light crude oil for delivery in October on the electronic trading floor in New York also significantly rise on Tuesday by 0.92% or $ 0.39, which moved it to the price level of $ 43 per barrel. Monday's trading also ended in the green zone with an increase of 0.8% or $ 0.36.
In general, over the last month of summer, the price of Brent oil brand was able to increase by 4.6%. While the WTI brand managed to gain 5.8%. It is noteworthy that Brent has been growing for six months in a row, and WTI has been growing for five months.
The previous month ended with a positive dynamics in the crude oil of both brands, however, its overall price level is not yet high enough. Thus, WTI cannot cross the $ 43 mark and firmly gain a foothold above it. These unstable dynamics is still due to the coronavirus crisis.
Despite its constant growth, Brent also faces problems with growth. On Monday, it repeatedly tested the $ 46.5 mark per barrel but was unable to gain a foothold there. By the end of the trading session, the mark fell back to $ 45.5 per barrel. This dynamic situation was a consequence of the complexity of factors that put pressure on oil prices. On the one hand, during the day the price was well supported by rather positive statistics on the growth of the Chinese economy. In addition, the weakness of the US dollar, marked by the 0.5% decline in the DXY dollar index, also traditionally pushes oil upward. On the other hand, by the end of the trading day, quotes on the US stock markets showed a sharp and unpleasant drop, which became an obstacle for investors to work on the oil market.
Further, one should not forget that the production of crude oil in the US is growing steadily. In June, the indicator increased by 4.2% compared to the previous period. The total production volume was 10.4 million barrels per day. Despite the fact that this is still less than last year, investors perceive this fact as a "bearish" factor.
The situation may radically change after the release of official statistics on the level of raw materials in the US. These data are especially relevant against the backdrop of the recent incidents in the Gulf of Mexico.
