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Oil fell on the statements of Iran and Saudi Arabia

Нефть подешевела на заявлениях Ирана и Саудовской Аравии

The world prices for oil during the auctions on Wednesday have gone down amid statements by oil Ministers of Iran and Saudi Arabia about the plan by freezing the level of oil production, as well as on the background of pessimistic data the American petroleum Institute weekly stocks in the country.

As at 08.17 Moscow time the price of April futures on North sea petroleum mix of mark Brent fell by 1.32% to 32,81 $ per barrel. The price of April futures for oil of mark WTI have decreased on 2,45% – to to 31.08 per barrel, reports RIA “Novosti”.

World oil prices resumed a negative trend after the declarations of the Minister of oil of Iran Bijan Zanganeh that offers to freeze oil production are “unrealistic” and “ridiculous”. The Minister of oil of Saudi Arabia Ali al-Naimi at an energy conference IHS CERAWeek in Houston on Tuesday noted that the agreement on freezing of production does not imply a reduction in its volume. However, he expressed confidence that more countries will join this plan, and a new meeting on the issue of freezing of oil production could happen as early as March.

“If they will freeze production at the level of January, when the excess supply is around 1 million barrels per day, it simply just prolong the situation of preservation of the excess supply,” Reuters quotes the Energy Aspects analyst Dominic Haywood.

Added pessimism in the current trading news from the American petroleum Institute, published earlier. According to the report, oil reserves in the U.S. last week rose by 7.1 million barrels in the previous week showed a decline of 3.3 million barrels. The indicator is almost twice exceeded the expectations of analysts, who predicted growth of reserves of only 3 million barrels.

In the spotlight of market players are also the data about oil stocks in the USA from the Ministry of energy of the country, which will be published later on Wednesday. According to analysts, crude inventories in the United States (excluding strategic reserves) for the week ended 19 February, increased by 3,427 million barrels – up to 507,527 million barrels.

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