Oil prices are trying to recover after sharp fall on Tuesday. On the eve on the side of “bears” was and statistics, and statements of various officials, and, of course, the strengthening of the dollar.
Let us begin with the latest inventories data from the American petroleum Institute. The statistics were published closer to the close of trading, but could strengthen the price drop.
Market participants expect growth of oil reserves at 1.5 million barrels, however, they grew by only 942 thousand barrels.
Stocks in the oil storage in Cushing and is decreased by 620 thousand barrels.
A positive point could be the reduction in gasoline stocks more than expected by 1.6 million barrels. Everything seems to be good, but there is one component that generally plays such an important role, distillate stocks. They grew by 3 million barrels.
Well, since the General mood in the market was negative, it was enough to further push prices.
However, still the main reaction will be to the official data on stocks of energy that will be released today and will also contain statistics on production volumes.
Well, the drop in oil prices on Tuesday began after the statements of the Iranian authorities about that now they want to increase production to 4.8 million barrels a day. Earlier, Iran had insisted that production growth in the country to 4 million barrels, that is, until the pre-sanctions level and then seems to have been ready to start a conversation about the freezing.
But no, now the appetites of the country has increased, at least such a conclusion can be drawn from the statement, and oil prices rapidly went down. However, as always, it was just newsworthy. To predict the decline in oil prices was at the end of Friday, when the statements of fed chair Janet Yellen has led to growth of dollar to all currencies.
Today, by the way, the dollar index has shown a slight decline, if the decline of the U.S. currency to resume, the oil has all the chances to reach $52 per barrel.
What price of oil will lay in the budget of the Russian Federation
The Ministry of economic development proposed budget for the 2017-2019 biennium. the price of oil at $50-55 per barrel, otherwise the budget doesn’t add up. About this informed the newspaper “Vedomosti”.
The basic version still comes from the price of a barrel $40 for the whole three years. “Basic plus” implies a higher price: $50 in 2017 and $55 in 2018-2019.
Budget at $40 per barrel remains razbalansirovat, says the Federal official, the possibility to lay a higher price. The budget comes from the forecast is called “basic”, so no changes are necessary, explains the emergence of “basic plus” another Federal official. Usually economic development is three options: basic, conservative (with a cheaper oil) and a target coming from the targets outlined in the may decrees of the President.
