Brent: completion increases on February 05, 2016

February 5, 2016

While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session.

On Thursday, Saudi Arabia lowered export prices of the high quality crude oil for Europe and Asia. Saudi state company Arabian Oil Co. (Aramco) has published official list of selling prices, which showed that the price of some oil grades have been reduced from 0.2 to 0.75 USD per barrel.

For Iran, the European region is also of great importance; the country is going to increase exports of oil to Europe after lifting of the Western sanctions. Iran has already announced that it will not reduce oil production until its exports exceeds the current level (which is 1.1 million barrels per day), by 1.5 million barrel. 

Russia has also reached the highest levels of oil production since the Soviet times and the rumors about the upcoming negotiations between Russia and Saudi Arabia on the reduction of oil production have been belied by OPEC representatives.

Demand exceeds supply in the oil market. According to the US Department of Energy, US stocks of crude oil and oil products have grown by 7.7 million barrels over the last week, which is over 500 million barrels for the first time over 80 years.

At the close of trading yesterday futures for Brent in ICE Futures Europe fell in price by 1.7% up to the level of 34.46 USD per barrel. Yesterday’s price spot dropped to 34.30. Due to the increase of oil production in the world, slowdown of the global economy and increasing completion in the oil market, the price of oil goes back to the downtrend. If the data on NFPR (Non-Farm PayRolls) will be higher than expected, interest rate in the USA can be increased in March. In this case the USD will strengthen while oil price will go down to the recent lows of 27.00.

Publication source
LiteForex information  LiteForex reviews

December 8, 2016
Banks guidance ahead of the ECB meeting
It seems that everything is clear the ECB will extend its asset-purchasing program, and send the euro lower. But banks smell a rat in this announcement. The ECB should introduce more easing measures...
December 8, 2016
Prepare for the ECB meeting outcome
The currency market has lost some volume, as traders are closing their positions ahead of Christmas and New Year’s celebrations. Investment funds are in no hurry to open new positions; they rather prefer to be actively trading in January...
December 7, 2016
Will ECB support Italy?
The yield of the Italian sovereign debt fell on Tuesday as the focus moved to the political uncertainty on the market. After Renzi’s crash on the weekend and the expectations of the ECB measures to deal with the possible fallout of the financial markets...

Tickmill Rating
Grand Capital Rating
FOREX.com Rating
XM Rating
HotForex Rating
FxPro Rating

Anyoption Rating
Binary Brokerz Rating
Beeoptions Rating
Porter Finance Rating
Grand Option Rating
IQ Option Rating