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Oil traded at nearly $ 74 a barrel in New York while Saudi Arabia's pledges to revive supply eased worries of scarcity, while lower crude inventories in the United States ignited them. The American Petroleum Institute reportedly said stocks had dropped 4.51 million barrels last week, while a Bloomberg survey also estimated a decline. Saudi cabinet claimed that the kingdom was ready to use its unused capacity, while Energy Minister Khalid Al-Falih reiterated with Russia that the agreement of the OPEC with its allies is to increase production by 1 million barrels a day. Oil is trading at levels close to those seen in 2014, as supply disruptions from Libya to Canada and Venezuela outweigh the production gains of the country. Organization of the oil exporting countries. Morgan Stanley raised its crude Brent forecast to $ 85 a barrel next year, while US President Donald Trump continued to push OPEC's largest producer in Saudi Arabia to increase the oil price. said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London. "It seems that any further increase in supply from Gulf and Russian producers will not be able to replace the barrels lost from Libya, Iran and Venezuela."
West Texas Intermediate crude for the month of August was trading at 73.57 dollars a barrel on the New York Mercantile Exchange, down 57 cents, at 10:33 London time. On Tuesday, prices broke $ 75 for the first time since 2014. The total volume traded Wednesday was in line with the 100-day average
The Brent settlement for September was little changed at $ 77.78 a barrel on the ICE Futures Europe exchange based in London. and negotiated at a premium of $ 6.53 for WTI for the same month.
Yuan-denominated futures for delivery in September slid 1.4% to 496.7 yuan a barrel on the Shanghai International Energy Exchange. The contract closed up 0.4% on Tuesday, capping the longest run of daily gains since its inception in late March
Supplies Shrink
In addition to declines in domestic inventories, stocks at the largest US stockpile of Cushing, Oklahoma, decreased by 2.6 million barrels, API has been reported. If confirmed by government data on Thursday, it would be the seventh consecutive decline. A Bloomberg study predicted a 5 million barrel drop in domestic stocks.
Saudi Arabia declared that it "would use its spare capacity to cope with future changes in oil supply and demand rates, in coordination with other producing countries. ". According to a report by the Saudi press agency
Saudi and Russian energy ministers reaffirmed their 1 million barrel deal reached last month in Vienna, after Trump tweeted this weekend. He had received assurances Trump's news on OPEC and oil prices further worried the market and put upward pressure on prices rather than reassuring him. Standard Chartered Plc analysts wrote in a note
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