Oil quotes today are getting a little low, which generally it is logical after such rapid growth the day before. Today in the spotlight the data on reserves and production from the US Department of energy, but yesterday his version of the statistics published by the American petroleum Institute (API).
Despite the strongest over the last month, growth stocks, much of the sentiment in the oil market of it is not bad. Yes, prices have certainly gone down, but that substantial movement is difficult to call.
As for the statistics from the API, crude stocks rose by 3.45 million barrels, stocks at Cushing – 1.46 million barrels and gasoline – by 271 thousand barrels. But distillate inventories decreased by 1.36 million barrels.
By itself, the market situation remains very difficult. To understand where further moves quotes, it is very difficult. The correction that began in the beginning of the month, I think it was yesterday stalled. However, if you look at the daily chart, it becomes clear that the lower boundary of the channel is not reached, so the probability of further decline is still high.
The short-term direction of movement may determine the report of the US Department of energy reserves and oil production in the country. These data may differ from statistics API.
We will remind, last week the highlight of the report, energy was a strong drop in production. Oil production in the USA showed maximum decline over the last 10 months, i.e. from July 2015 Daily rate was reduced from 113 thousand barrels to 8,825 million barrels per day.
As we can see, even such a sharp drop in production could not cheer the “bulls”. However, on various news streams to pay special attention not: quotations of “black gold” securely controlled by the major players and most show close correlation with the U.S. dollar. When it strengthened oil begins to decline, with the weakening – grow.
The dollar index from its recent lows has increased over a few days by almost 3%, so there is nothing surprising in the fact that oil prices went down. However, yesterday’s rapid growth a few drops out of the picture. It will be interesting to watch the development of events today.
Saudi Arabia plans to increase oil production
Saudi Arabia, the world’s largest oil exporter, plans to significantly increase production in 2016 and to strengthen its presence in the global market, said the head of state oil company Saudi Arabian Oil Co. (Saudi Aramco) Amin Nasser.
According to Amin Nasser, the demand for oil grows, Saudi Aramco, and the company will meet this demand.
Over the next few weeks the company plans to increase production at the field Washer (Shaybah) by 33% to 1 million barrels per day (b/d), quoted Nasser Amin of Bloomberg. Gas production from the field is expected to double within a decade.
“The situation in the market complex, but opportunities for growth are available,” – said the head of Saudi Aramco.
The company expects that world oil demand will grow by 1.2 million barrels a day in 2016.
The average volume of oil production Saudi Aramco in 2015 amounted to 10.2 million barrels per day.
