The oil surpluses are already forming in the world – the price keeps going down

Oil futures on the New York Commodity Exchange fell 7.7% last Friday. at the lowest level in more than a year, has stopped falling. D. Repeat briefly, believing that the drop in oil prices is good news, even after the fall in WTI prices in WTI last week was the strongest since 2016. January The Saudi Oil Minister said the last week than in October, the kingdom had increased its production to 10.8-10.9 million euros. barrels a day, while adding that the world's largest exporter would not market the market.

The West Texas Intermediate (WTI) oil futures price in the United States is $ 50 per barrel. Iranian oil continues to thrive in international markets after US President Trump has abandoned some of the country's previous petroleum extraction demands. The increase in oil reserves in the United States reinforces the potential for increased global supply. Market participants question whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies will decide to restrict production when they meet in Vienna early next month.

"While all eyes are turning to the next OPEC meeting and impending organizational decisions, investors are finding that the balance between supply and demand is narrowing", said Tomomichis Akuta, chief economist of Mitsubishi UFJ Research and Consulting. – Saudi Arabia may need to consider D. Short-term calls to support lower oil prices for consumers. "

January delivery of West Texas Intermediate (WTI) oil futures to the New York Commodity Exchange on Monday at 12:36 pm Tokyo rose 38 cents to US $ 50.80 a day. Last week, this type of oil futures fell 10.7%. at $ 50.42 per barrel. The total volume of trade was more than twice the average of one hundred days.

The January Brent crude oil futures price on London's ICE Futures Europe rose Monday to 67 cents to settle at 59.47 dollars a barrel. Futures contracts for this type of oil fell below the $ 60 mark on Friday, for the first time since October 2017.

D. A brief comment on Twitter shortly after last week, he thanked Saudi Arabia for lower prices. The US president, who advocates lower interest rates, has also not spared criticism from the US Federal Reserve (EDF), describing the US central bank as a "problem".

Saudi Arabia is likely to contribute to price declines, with the increase in D. Short Pressures. The volume of oil extraction in the Kingdom in October was in surplus and amounted to 10.7 million. The country's energy minister, Khalid Al-Falih, reported daily last week. According to him, although the demand for Saudi crude oil in January may be lower than in December, his country will not export more oil than necessary.

OPEC and its partners met on Dec. 6 in Vienna, but oil price guidance for next year could be resolved this week, when key policymakers will meet at the G20 summit in Buenos Aires. The Saudi Crown Prince and Russian President, as well as their energy ministers, should also visit the Argentine capital.