Oil prices are recovering in anticipation of API’s data on reserves

Oil prices are recovering after the sharp decrease during the night trading. 04.Jan.17 12:13 PM By Anna Tuzova Photo Toinnov.com    642

To be reminded, before that night, quotations reached 18-months period maximum, and though Brent prices exceeded the rate of $58 per barrel, futures fell in price approximately by 2,5% by the evening, having returned to the area of above $55 per barrel. By 8:00 (UTC-5) the price of Brent crude oil was about mark of $55,80 and value of contracts for WTI was about $52,60. Weekly American Petroleum Institute’s data on oil and petroleum products reserves will be published today. There are persistent concerns that OPEC and non-members of the cartel could not implement the agreement on oil output reduction faithfully. If the agreement is observed, the world supply will reduce approximately by 2%.  Investors, in addition, are concerned about the petroleum production increase in Libya and Nigeria and news about the growth of crude sales by Libyan Kurdistan. Both countries were absolved of the need for oil output limiting since they had lost the market share in their time due to a war and attacks on the oil infrastructure by rebels. The strong dollar contributed significantly to the pressure on the oil market: the index of the American currency reached levels not seen since 2002 yesterday.

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