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Crude prices are moving towards $40

The market is getting lower once again ahead of a weekly inventory report.

27.Jul.16 2:28 AM
By Alesya Davydova


Crude prices are moving towards $40
Market crude prices are moving lower again on Tuesday as a new weekly inventory report is published with the prospect of rising product inventories, informs.

Among the reasons influencing crude prices the experts name the ongoing sabotage in Nigeria which constrains world crude exports. The African country is among main suppliers of India and Europe (Netherlands, Spain and France) and it also sends crude into the U.S., and predominantly to the East Coast. West African crude imports to the U.S. reached their highest level since August 2013 in May before coming off again in June.

The product glut topic does not also allow the market prices to settle. After the overproduction of gasoline in recent months, refineries seem to shrink crack spreads, reducing crude demand and putting downward pressure on prices.

The experts also note that the Russian ruble also has its effect on the market. As it is getting stronger, which is good for investors, it means that the price of oil is reduced in local currency terms, making government revenues lower.

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