API: the US raw material inventories fell last week. Oil is rising in price

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API: the US raw material inventories fell last week. Oil is rising in price
September 28
09:00 2016

The data of the American Petroleum Institute (API) showed that the US raw stocks had fallen last week. This was announced on Tuesday.

According to the API, reserve oil stocks have fallen by 752,000 barrels, amounting to 506.4 million per week (the week ended on September 23). Meanwhile, the analysts made a forecast for an increase in stocks by 3 million barrels.

In addition, according to the API, the volume of stocks at the distribution center in Cushing (Oklahoma), have fallen by 832,000 barrels.

Oil quotations began to grow on these data again after the fall on Tuesday. However, the rise in oil prices is constrained by the fact that the oil-producing countries are still unable to find agreement on the issue of oil production limits.

Futures contracts for Brent crude oil have grown by 0.44 % to $ 46.17 per barrel. On the eve the contracts fell by 2.9 per cent.

By this time futures for WTI crude oil cost around $ 44.76 per barrel. This is by 0.20 % higher than the index of the last session completion. On the eve the quotations grew up to the target of $ 45.09.

Today in the afternoon the members of the Organization of Petroleum Exporting Countries (OPEC) are going to hold an informal meeting within the framework of the International Energy Forum. It should be reminded that the 3-day meeting is being held in Algeria and finishes on Wednesday.  In addition, oil-producing countries that do not belong to the organization will also take part in the negotiations together with the OPEC members.

On Tuesday raw materials were falling in price against the news that the Saudi Kingdom hadn’t left any hope that members of the OPEC members and the countries outside the cartel would come to compromise. But, nevertheless, it does not exclude the possibility that an agreement regarding the refusal to increase oil production will be reached.

Last week Reuters reported that Saudi Arabia had received a proposal to cut the production, provided that Iran would reduce its oil production. But Tehran’s representative stated that, in his opinion, the meeting would be advisory in nature. Meanwhile, Iranian Oil Minister Bijan Zanganeh said that the parties “would try to reach an agreement in November” at the Vienna Summit.

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