Software News Articles: The price of Brent crude fell to a record in 11 years

Monday, December 21, 2015

The price of Brent crude fell to a record in 11 years – NEWSru.com

The price of oil reference marks
continue to fall in the morning on Monday in anticipation of the growth of the supply of fuel
on the world market, which is already experiencing a significant oversupply,
According to “Interfax” referring to agency Bloomberg.

The February futures for Brent crude on London’s ICE
Futures for 8:12 Moscow fell to $ 0.68 (1.84%) – to 36.2 dollars per barrel. Earlier in the trading price fell to 36.17 dollars per barrel, which is the lowest intraday level since July 13, 2004.

At the end of trading on Friday, Brent fell by $ 0.18 (0.49%),
ending the day at 36.88 dollars per barrel.

futures for WTI crude oil for February in electronic trading
New York Mercantile Exchange (NYMEX) on Monday morning fell by
$ 0.34 (0.94%) – up to 35.72 dollars per barrel, which is the lowest since December 2008. At the end of the previous session, the contract price dropped to $ 0.21 (0.58%) and amounted to 36.06 dollars per barrel.

The ruble exchange trading falling after oil. As economists say, 36 dollars – a frightening script for Russia, whose budget been drawn up for the next year at the rate of $ 50 per barrel, and 44% of the revenue generated by the sale of hydrocarbons.

At the same time cheap oil is beneficial to Western countries – consumers of fuel and the largest importer of crude oil to China, and the decline in oil prices in general have a positive effect for the global GDP.

Fast drop

The main cause accelerated in December, falling oil prices – in an excess of oil supply in the market. OPEC members at the last meeting of the cartel on December 4 refused to even call restrictions on oil production. Now the cartel, according to experts, produces 31-21 million barrels of oil per day.

Saudi Arabia is trying to increase its market share and force the US to leave the company, which in recent years stepped up oil production due to the “shale revolution”.

The oil reserves in the United States, according to statistics published last week, were at the highest level since 1930.

In addition, last week, President Barack Obama signed the draft budget for 2016, providing for the abolition of the ban on the export of American oil, which operated for the past 40 years.
This decision, according to some experts, by itself, is unlikely to significantly affect the cost, but it can aggravate the situation with excess oil.

Another reason for the accelerating fall in oil prices was the decision by the OPEC summit on December 4, that the OPEC countries may continue to prey on the actually prevailing in the previous months level, ie in the amount of approximately 31.5 million barrels per day.

Finally, the supply of oil in the coming months is expected to increase because of Iran, which is preparing to return to the market after the lifting of sanctions. Experts expect that Iran will start exporting oil in the first quarter of 2016.

The demand for oil in the world is still weak due to the slowdown of the Chinese economy and the reduction in demand from developing countries.

Related Links:

Obama took 40 year-old ban on the export of oil from the United States
// NEWSru.com // // Economy December 19, 2015