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This day began with news of oil prices falling, although yesterday, the black gold market was growing steadily, and the price of raw materials rose by an impressive 3%. However, it turned out that this is only temporary.
Today, the price of December futures for North Sea's Brent crude oil declined by 0.21% and amounted to $ 43.25 per barrel, while the price of November futures for WTI declined by 0.12% and reached $ 41.14 per barrel.
The correction dynamics of quotes characterized today's trading after the price of oil increased yesterday due to expectations for a production decline.
The initial thing is that investors continue to closely monitor the situation in the Gulf of Mexico and the fate of the tropical storm "Delta". On Monday, the storm formed in the Atlantic Ocean and continues to strengthen every day, which eventually reached the third category. Amid this intensification of the hurricane, companies decided to evacuate their workers from platforms and suspend production of 1.5 million barrels of oil per day.
The second reason for investors' concern is the situation in Norway, which creates serious risks for supplies. Earlier, the Norwegian energy company Equinox said that if the strike of oil and gas workers in the country continues until October 14, there will be a temporary stop of production at the large Johan Sverdrup field in the North Sea. This, in turn, may affect the total production of almost 1 million barrels of oil per day.
The final reason for the unstable situation in the market of raw materials is the report of the US Department of Energy, which was unexpectedly released on Wednesday. It recorded an increase in the amount of oil reserves in the country. According to the US Department of Energy, the level of reserves of black gold in the US increased for the first time in four weeks. The total volume of raw materials increased by 500 thousand barrels.
However, there is no need to be very worried. Analysts say that even the combination of these factors is not enough for a long-term price increase. The market may benefit from a reduction in the supply of raw materials as more oil is produced in the world today than it is consumed. Moreover, the current growth of price is caused by weather conditions and strikes, which is unlikely to last long.
Despite this, experts predict that the quotes will grow by about 10% from the beginning of the week, which may lead to the first weekly increase in oil prices over the past three weeks.
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