Today, the situation in the energy market is as follows: WTI crude oil shows a moderate growth, while another benchmark oil Brent shows a drop in quotations.
Currently, futures (with execution in March) for the Brent crude oil (traded on the ICE Futures exchange in London) showed a decrease in $ 0.26. Thus. the price of futures fell below the psychological mark of $ 70 per barrel; the drop since the start of today’s trading session was 0.37%.
At the same time, WTI brand oil behaves very differently. Futures for February delivery for this benchmark oil are currently being traded on the New York Mercantile Exchange (NYMEX) at a price of $ 64.52 per barrel. Thus, the increase since the start of the trade today has been $ 0.22 US or 0.34%.
For yesterday, futures for Brent benchmark oil have risen in price by 0.56%. In absolute terms, the increase has been 0.39 US dollars at the close of trading; the futures price was $ 70.26 per barrel of Brent crude oil.
We cannot bring similar statistics for WTI, because the exchange in New York was closed. America celebrated Martin Luther King’s Day and was happy for its colored population.
The rapid growth of oil quotations (called “rally” by traders) is caused by the fact that the countries that are part of the expanded composition of the OPEC cartel manage not to violate the agreement on the reduction of the production.
However, experts on the energy market (from such major banks as Citigroup, Societe Generale and JPMorgan Chase) suggest that the situation in the market is developing in such a way that the countries that are part of the OPEC + association will lift the production restrictions earlier than the deadline, which will lead to the collapse of oil prices.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade