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Oil prices slightly change

26 December 2017 19:00 (UTC+04:00)
Oil prices slightly change

By Sara Israfilbayova

World oil prices slightly change on December 26 on investors' expectations of statistics on the U.S. stocks of raw materials.

Brent crude, the international benchmark for oil prices, slipped 15 cents to $65.10 a barrel, West Texas Intermediate (WTI) crude was down 7 cents at $58.40, Reuters reported.

Cautious trades are connected with investors' forecasts concerning the decrease in the reserves of “black gold” in the U.S. and the possible growth of production, The Wall Street Journal says.

The U.S. Energy Department noted that production in the country has been growing for almost two months in a row.

Investors are waiting for the publication of data on raw materials stocks in the U.S. following the results of the week that ended on December 22 from the American Petroleum Institute (API) and the Energy Information Administration (EIA) of the U.S. Energy Department.

Analysts predict a 3.8 million barrel decrease in inventories, or 0.9 percent to 432.7 million barrels.

Moreover, investors are waiting for news about the resumption of the operation of the Forties pipeline.

On December 25, the petrochemical company Ineos reported that repairs of the pipeline in the North Sea have been technically completed and pressure pipes are being tested. The company expects a gradual return of the pipeline and the Kinneil terminal to normal capacity in early 2018.

“The confirmation that Forties is coming back is the main development of the long weekend,” said Olivier Jakob, analyst at Petromatrix. “For sure it has the potential for capping Brent.”

In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan agreed to reduce oil output by 558,000 barrels per day, including Russia by 300,000 barrels per day, starting from January 1, 2017 for six months, extendable for another six months.

OPEC and its allies reached an agreement on prolongation of the deal until the end of 2018 on November 30 in Vienna.

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