Oil prices rise on world markets
By Nigar Abbasova
The price of oil has continued to rise in the world markets. The prices rose following API’s (The American Petroleum Institute) report on the reduction of crude reserves in the USA.
API said that the reserves in the last week have decreased by 6.7 million barrels as compared to the forecasted decrease of 2.6 million barrels.
The market attention is currently focused on the oil reserves data which is to be published by the US Department of Energy later on June, 7. Analysts forecast that the decrease will amount to 2.5 million barrels which makes 0.47 percent of the reserves. The forecasted volume is 524. 1 million barrels.
Despite the fact that the API’s report on crude oil stockpiles is considered to be the main price driver, analysts also pointed to a lower U.S. dollar, CNBC reported.
Global benchmark Brent crude oil futures were trading at $48.96 per barrel at 07:12 GMT on July, 7 as compared to $49.17 per barrel shown in the early morning. The figure is 17 cent above the last settlement. West Texas Intermediate (WTI) crude was at $47.67 per barrel, up 24 cents from its last close.
"Bounce after two-day sale of the crude oil in the market currently depends mainly on the data on the reserves in the USA, new shocks connected with Brexit are not expected," The Wall Street Journal said citing Stuart Ive, OM Financial account manager .
Traders have also reacted on the index of business activity data in the sphere of services which was provided by the U.S. Institute for Supply Management, ISM. The figure has increased to 56.5 percent as compared to the rates of 52.9 percent shown in May while the forecasted growth was 53.3 percent.
Meanwhile, the rate of occupancy in the sphere has also increased to 52.7 as compared to 49.7 percent shown in May. Index increase is considered to be the indicator of the improvement of the economic situation in the USA which in its turn triggers oil demand in the world.
Black gold prices are also affected by the news about attacks on oil facilities in Nigeria. The Niger Delta Avengers militant group has claimed responsibility for the explosion that occurred in the drill well which belongs to Chevron, as well as pipeline of the Nigerian National Petroleum Corporation (NNPC) subsidiary and two lens of the NNPC pipeline. The developments also trigger decrease in the world oil supplies.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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