On Wednesday Oil prices has backed down to the lowest level in two weeks in the Europe market and the American crude continues its losses for the third day respectively, and Brent crude for the seventh day respectively in a longest daily losses chain since the trading in 2016, and the prices have backed down because of the fears about increasing oil production in the US for the highest level in two years, and that’s will impediment the process of achieving the balance in the market.
At 9:10 GMT the American crude has backed down to the level 50.02$ for the barrel from the opening level 50.14$, and record the highest level 50.28$, and the lowest level since 19 of September 40.90$.
Brent crude has decreased to the level 55.50$ for the barrel from the opening level 55.70$, and record the highest level 55.83$, and the lowest level since 19 of September 55.37$.
The American crude has decreased in yesterday’s trading by 0.8$, in second daily losses respectively, and Brent crude contracts have lost by 0.7%, in a six daily losses respectively.
Oil production has jumped to 9.55 million barrels daily in the USD during the week which ended in 22 of September, and that’s the highest level of production since July 2015, and the expectation Leeds that the energy information management data will today will observe an increase in production for the fourth week respectively, to pass 9.61 million barrels daily, and that’s the highest level of the American oil ever.
In the US the drilling rigs of shale oil had recorded last week the first increase during seven weeks, in a sign of accelerating the operations again, and the tornadoes effects which hit the country lately are gone.
The increasing of the American production is now the biggest barrier in front of the market balance, which is independent producers and OPEC are going fast to achieve it before the end of international production decreasing deal in March 2018.
The independent producers and OPEC will discuss the market support again at the energy conference in Moscow, and carry this recommendation to OPEC officials meeting which will be in the next November.
The American oil academy has announced yesterday an decreasing in crude stocks in the country by 4.1 million barrel, for the week which ended in 29 of September, and the experts expectation passed the decreasing by 0.8 million barrel, in a second weekly decrease respectively, in a sign of improving the demand of the biggest oil customer in the world.
The traders are waiting today for an official data of stocks and that’s will issue by the American energy information management, and the expectation Leeds to a decreasing by 0.5 million barrels, in a second weekly decrease respectively.