Crude prices fall on data on growth of reserves in U.S.
By Sara Israfilbayova
World oil prices drop on Wednesday after the rally during the previous session, following which the cost of WTI jumped to a maximum since December 2014.
Brent crude futures down 0.17 percent, to $69.83 per barrel, U.S. West Texas Intermediate (WTI) crude futures were at $64.45 a barrel, down 0.03 percent, RIA Novosti reported.
According to the forecast of S & P Global Platts experts, oil reserves in the U.S. last week fell by 1.6 million barrels. Decrease in inventories can be noted for the tenth consecutive week, which will be the longest such period since 1982.
The U.S. Energy Department will publish a weekly report on energy supplies on January 24.
Meanwhile, the data of the American Petroleum Institute (API), released on Wednesday night, pointed to an increase in oil reserves in the U.S. over the past week by 4.76 million barrels.
Positive for the oil market is the spirit of OPEC + countries to cooperate even after the expiration of the current agreement on limiting production, writes MarketWatch.
Saudi Arabian Energy Minister Khalid Al-Falih said during the World Economic Forum in Davos that OPEC + countries approve the need to expand this form of cooperation between OPEC and non-OPEC after the current agreement is concluded.
In turn, Russian Energy Minister Alexander Novak stressed that current oil prices objectively reflect the fundamental factors and the situation on the market.
At the event, was held voting on the forecast of oil prices.
“Most of those who voted for $60, I think, quite objectively
access the situation. As we remember, everyone said that in 2018
prices will be approximately at the level of $45-55, and today we
see that there has been more optimism,” the minister added.
In November 2016, the OPEC summit was held in Vienna, where OPEC
members reached an agreement on reducing oil output by 1.2 million
barrels per day. In December 2016 was a meeting of oil producers
outside the OPEC. The meeting ended with signing an agreement to
reduce oil production by a total of 558,000 barrels per day
starting from January 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
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