Oil is slightly growing against the dollar price reduction and hopes for the OPEC actions

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Oil is slightly growing against the dollar price reduction and hopes for the OPEC actions
September 07
13:00 2016

On Wednesday oil quotes are slightly going up. Brent crude oil has been about $ 47.5 per barrel due to the fall of the US dollar and market forecasts, contradicting each other. The forecasts are made regarding the potential opportunity of the oil producing countries to reach a consensus on the reduction of raw materials.

It is expected that the information on oil supplies in the United States this week will demonstrate a reduction in reserves after two weeks of the growth.
On the eve Adel Al-Dzhubeyr , Foreign Minister of Saudi Arabia, made a statement that the agreement between the two countries that extracted the resource was probable only when the agreement involved all countries. Al- Dzhubeyr said that Iran, which did not cease to increase oil production, may become an obstacle to the agreement.

Meanwhile, Tehran has hinted that it agreed to cooperate with Russia and the Saudi Kingdom but under certain conditions.
In any case the analysts do not make predictions about the decisive steps from the oil producing states regarding the oil production freeze and attempts to increase prices in the market. The states are planning to meet at the World Energy Forum in Algeria on 26 September.
A day earlier, Iranian Oil Minister Bijan Namdar Zangene had a meeting with the new president of OPEC Mohammed Barkindo. After that he said that the desire of producers was the price stabilization within $ 50-60 per barrel. This is above the current figure, but below the levels at which competitors – producers of shale oil in the US – can begin to increase the production.

Oil companies of the United States do not stop the production despite the low prices, keeping it at a high level. The companies even continue to increase the number of new rigs.
On the London Stock Exchange quotations of November futures contracts of Brent crude oil have risen by 0.5% – to $ 47.50 per barrel.
The price of October futures for WTI crude oil has risen by 0.4% – to $ 45.01 per barrel on electronic trading at the New York Mercantile Exchange.

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