SINGAPORE (Reuters) – The oil market has dropped by 7% in the previous session and has been striving to find its success on Wednesday, fueled by growing demand for investors to retain investors.
FILE PHOTO: Oil is driven by Edwin Dereykin's 1859 well, October 5, 2017 at the Drake Museum in Titusville and the Drake Museum at the start of the modern oil industry. REUTERS / Brendan McDermid / File Photo
The price of WTI oil was $ 55.45 per barrel at the London-based ICE Futures Europe exchange.
The LCOc1 oil futures price Brent was $ 65.51 per barrel.
The market in the past has exceeded 7 percent. From the beginning of October, nearly a quarter of the cost of crude oil was lost, which was one of the biggest drop in prices in 2014.
The decline in spot prices led to crude oil extending to the bottom of the curve.
The prices in September prices were higher than the supply, which is not a source of oil sales because it represents a strong market.
By mid-November, the curve came to the condensate, but if the urgent delivery price was cheaper than later. This will make the market more attractive for oil storage to postpone the market.
The oil markets are heavily pressured on both sides: concerns about supply and worry about economic downturn.
US crude oil production is expected to reach 7.94 million barrels in December from seven large shale basins. This was reported on Tuesday by the Department of Energy Information (EIA) of the US Department of Energy.
This indicator of continental production has recorded a record $ 11.6 million in the production of the US C-OUT-T-EIA oil. It helped to create barrels, making the United States the world's largest oil producer in Russia and Saudi Arabia.
Most analysts say the US will spend $ 12 million in the first half of 2019.
"This is, in our opinion, $ 85 per barrel (at the price of oil)," said John Anderson, Commodity Department Manager of Vontobel Asset Management.
The growth of US production promotes growth in reserves.
According to the American Petroleum Institute's industry group, US crude oil reserves have fallen to 7.8 million barrels per week from 2 to 432 million tonnes, as they have reduced their production volumes.
The oil exporting countries (OPEC) are monitoring the supply and price cuts.
OPEC is increasingly announcing that it will capture supplies of raw materials and raise prices in 2019.
"OPEC and Russia are pushing for a reduction in the current level of production, which is a decision taken at the next OECD meeting on December 6," Anderson said.
He puts the OPEC on a collision course with US President Donald Trump, who openly supports the low oil prices and called on OPEC to cut production.
Henning Gloyshtein's report; Joseph Redford Editorial Board