Oil prices start week with slight decline. External background remains virtually unchanged, so we need to track new messages.
As of 8:00 Moscow time quotations of grade Brent traded at $40,88 per barrel, WTI is $40,66. Note that the April futures for U.S. crude expires today and all the activity flowed in may contracts, the price which we give.
Last week in the oil market saw a rapid growth: “bulls” actively used reports of reaching an agreement on the meeting of the countries-exporters. It will be held in the Qatari capital Doha on April 17. However, at the end of the trading session on Friday all of the daily growth was offset and the chart formed a so-called spire, which may be a sign of a trend reversal.
It is worth noting another interesting point. It is connected with the activity of the shale companies in the US. Many experts argue that kancevica will take advantage of rising prices and will resume production, even more so because it requires very little time: about six months.
And although oil prices are growing just a couple of months, in his weekly report from Baker Hughes reported the first since mid-December the growth in the number of working oil rigs, though their number grew by only 1 thing to 387.
But the total number of installations in the U.S. hit historic low, falling to 476 pieces.
However, it is unlikely that these data can be taken seriously, because the oil market is not always something to do with the fundamental or any kind of statistical data. This market is almost completely speculative, and for the major players of the movement always needed news.
Well, if you believe the information that the International energy Agency in its reports actually came up with nearly 800 thousand barrels per day of oversupply and no one knows where this oil and does it exist at all, the theory about the lack of connection between oil prices and fundamental factors receives further confirmation.
However, this information was actively used by banks and hedge funds to form public opinion and it was under this oversupply and played out a great game for a fall in the oil market.
In its comments, the WSJ analysts noted that “unaccounted oil”, it is likely that only exists on paper and as a result, the market will face a sharp narrowing of the differences in the actual ratio of supply and demand. Analyst on oil sector investment Bank Standard Chartered Half Horsnell said:
