Crude prices jump
By Sara Israfilbayova
World oil prices continue to show positive dynamics on Wednesday on the data of the American Petroleum Institute (API) on raw materials reserves in the U.S.
Brent crude are up 1 percent, at $63.98 a barrel. It had settled down $1.35, or 2.1 percent, on Tuesday on a wave of profit-taking after news of a key North Sea pipeline shutdown helped send the global benchmark above $65 for the first time since mid-2015, U.S. West Texas Intermediate crude are up 0.7 percent, at $57.56 a barrel, Reuters reported.
The API reported that for the week ended on December 8, the reserves of “black gold” in the country fell by 7.4 million barrels - to 440.7 million. At the same time, analysts predicted a smaller decline in inventories - by 4 million barrels.
Now investors are waiting for the publication of data from the U.S. Energy Department on raw materials reserves in the country. Experts predict a decline in commercial oil reserves in the U.S. (excluding the strategic reserve) over the past week by 0.9 percent, or 3.7 million barrels - to 444.3 million barrels.
The rise in energy prices also supports data on the closure of the Forties pipeline in the North Sea. Earlier, the operator of the North Sea pipeline, Apache Corp., reported that production at the Forties field was stopped due to unplanned repairs of part of the pipeline. It provides delivery of raw materials from 85 fields in the North Sea and pumps about 450,000 barrels per day.
Moreover, market participants are waiting for the publication of the OPEC monthly report on the implementation by the member states of an agreement on the reduction of oil production.
On November 30, 2016 OPEC members agreed to remove 1.2m barrels a day from global oil production.
Non-OPEC countries such as Russia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan decided to cut output by 600,000 barrels per day, beginning from January 1, 2017.
OPEC and non-members decided to extend cuts in oil output on November 30 till the end of 2018.
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