• Oil: an overview of the market situation

Market news

30 July 2014

Oil: an overview of the market situation

The price of oil fell slightly, closer to $ 107 per barrel (mark Brent), which was due to ample supplies in Europe and Asia. As for oil WTI, its price is also reduced, despite a report pointed to a decline in stocks.

Commercial U.S. crude inventories last week fell by 3,697 thousand barrels - up to 367,374 million barrels, according to the weekly report of the U.S. Department of Energy. Gasoline inventories rose by 365 thousand barrels and reached 218,236 million barrels. Commercial distillate stocks rose by 789 thousand barrels, reaching 126,721 million barrels. Experts expected a decrease of oil reserves by 1250 thousand barrels, gasoline inventories growth for 1000 thousand barrels and distillate stocks increase by 1,500 thousand barrels. We also add that the oil terminal in Cushing fell by 0.924 million barrels - up to 17.899 million barrels and refinery utilization in the United States decreased to 93.5% against 93.8% a week earlier

We also recall that yesterday's report from the American Petroleum Institute on changes in stocks in the U.S. showed that oil stocks fell by 4.4 million barrels, gasoline inventories rose by 0.06 million barrels, distillate stocks rose by 0.547 million barrels, while refining capacity utilization rate was 92.6% against 93.3% a week earlier;

On the dynamics of trade also affect expectations of the Fed meeting. Tonight, the Fed will issue a statement on the results of the monthly meetings, and on Friday in the United States will report on the employment market. Markets expect the Fed to reduce monthly program of buying bonds to $ 10 billion.

Meanwhile, adding that investors weakly reacted to news of strengthening sanctions against Russia and waiting for the reaction of President Vladimir Putin.

"The sanctions are directed against more investment in technology and their impact on the oil markets will manifest itself mainly in the long term," - said a senior economist at ABN Amro energy market in Amsterdam Hans van Kleef.

Regarding the situation in Libya, the production in the country is maintained at 500,000 barrels per day on a background of fighting in the capital Tripoli, a spokesman of the Ministry of Petroleum Industry.

The cost of the September futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 100.95 a barrel on the New York Mercantile Exchange (NYMEX).

September futures price for North Sea Brent crude oil mixture fell 16 cents to $ 107.30 a barrel on the London exchange ICE Futures Europe.

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