Oil: Saudi Arabia keeps its word

Oil prices principal reference varieties traded in negative territory on Thursday 31 March after it became aware that production from OPEC in March increased slightly, and the Agency the energy information recorded growth of commercial stocks in the United States.

According to Libertex, futures contracts on the European Brent crude oil with a term expiration in may on the ICE stock exchange in London at 11.00 on Moscow time since the start of trading fell by 0.7% and remained at the level 39,73 per barrel. At the same time WTI became cheaper by 1.2% and were located in the region 37,77.

News Agency Reuters said today that total production of OPEC countries in March has increased by 100 thousand barrels per day with 32,37 million to 32,47 million. The main contribution in production growth have made Iran and Iraq. Production in Saudi Arabia remained unchanged.

The energy information Agency in its weekly report released yesterday, the results of the previous week recorded growth in the U.S. inventories by 2.3 million barrels to 534,8 million.

The price of Brent trying below the support of $ 40 per barrel as the news background has slightly deteriorated. U.S. stocks continue to rise despite record levels of oil refining, and it still does not fit with the expectations of market participants about the reduction of oil production in this country.

OPEC countries are some increased production, but not critical. The most important thing is that Saudi Arabia adheres to its obligations and remains steadfast in its prey. Production from Iraq increased slightly, but it was planned. It may also be noted that the recovery of production in Iran there is still not as fast as previously thought. In General, the behavior of OPEC similar to the preparation of the implementation of obligations to freeze production at the current level.

After the price increases of up to 42 dollars per barrel the enthusiasm of customers subsided. Many record profits. Price in the region of $ 50 per barrel looks realistic level but to move up lack fundamental prerequisites. Expectations about the signing of an agreement to freeze production at the current level between OPEC and non-OPEC. Prices will continue to fluctuate in the range of 38 to 43 dollars per barrel.

Oil: Saudi Arabia keeps its word 31.03.2016

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