Oil prices fell below $50 a barrel

Цены на нефть упали ниже $50 за баррель

Oil prices fall again

Experts note that the market is too much oil and not enough demand.

Oil prices intensified the decline, dropping below $50 per barrel during trading. So, the July futures for Brent crude on the London ICE Futures exchange to 17:54 in Kyiv fell by $1.91 a (3,66%) to $49.95 per barrel. July futures for WTI crude oil on the new York Mercantile exchange (NYMEX) fell by $1,84 (3,71%) – to $47,82 per barrel.

The continued drop in prices caused by the doubts of investors that made by the countries of OPEC+ measures to reduce production will not reduce the reserves of oil in the global market prior to the planned levels in the face of continued growth in US production, reports Interfax referring to MarketWatch.

WTI around $50 per barrel, plus or minus the dollar become the “new normal”, as is the “too much oil and too little demand,” said economist National Australia Bank Finn Siebel. “We can see short-term price fluctuations, but seasonal factors will not change the overall picture of the game,” he said.

The fact that WTI is trading below $50 per barrel, suggests that the market is not convinced of the adequacy of the measures OPEC+ designed to return the oil market to a balanced state, said OCBC economist Barnabas Gan.

Analysts say that while Saudi Arabia continues to talk about the necessity of reducing global oil reserves, the message of OPEC at the end of last week’s meeting mentioned only “the importance of maintaining efforts to stabilize the oil market,” says Dow Jones.

Now the market attention is focused on weekly report of Ministry of energy of the USA about stocks of oil, gasoline and distillates in the country, which will be published on Thursday, as Monday was a public holiday.

As reported Корреспондент.netmay 25 at a meeting in Vienna, OPEC members agreed to extend the agreement to reduce oil production in the nine months to the end of the first quarter of 2018.

The experts noted that the recent OPEC decision will lead to the fact that the main factors influencing the global oil market will be data on reserves and production in the United States.

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