Monday , September 16 2019
Home / norway / Oil prices rise after a surprise increase in Oil – Energy stocks

Oil prices rise after a surprise increase in Oil – Energy stocks

At 20.30 on Wednesday night, the fuel grew suddenly under the $ 60 mark.

The price competition was initiated by the American Energy Agency (EIA), which on Wednesday presented a new report showing a surprise increase in US oil reserves.

The North Sea oil price is priced at $ 59.68 on the spot market at 20.40, with a daily decline of 3.87 per cent.

Except for a small period last week, oil prices have not been so low since January.

– Market in the wild

According to EIA, stocks grew by 2.2 million barrels, compared to consensus expectations for a stock of 0.5 million barrels.

It gives a second week of US stock growth.

"There is definitely a market that is still overloaded with these stock increases," said Reuters analyst Phil Flynn of the price futures group.

"It is difficult to evaluate the weekly EIA inventory," he says.

The fear of lower oil demand also led to a fall in oil prices.

"Oil shipments in the United States have increased by more than 10 percent this year and continue to rise as the commercial war contributes to the negative expectations of demand," said oil analyst Tyler Richie of Marketwatch.

Consider reducing OPEC

EIA announced on Tuesday that they had reduced their oil demand forecast to about 1.2 million barrels per day in 2019, compared with 1.4 million barrels a day in the May forecast.

According to Goldman Sachs, uncertain macroeconomic outlook and unstable oil production from Iran may mean that the OPEC countries cancel the planned cuts in production.

In the past, the Member States, together with Russia and other oil producers, have decided to limit the daily production of oil to 1.2 million barrels.

The next OPEC meeting will take place in late June. On Thursday, the Minister of Energy of the United Arab Emirates said the Member States are close to an agreement to extend the redundancies in production.

Also, American light oil (WTI) drops sharply on Thursday evening. Barrel now costs $ 50.96, which is down to $ 3.90 so far today.

Source link