American Petroleum Institute (API) reported higher than expected growth of crude oil reserves, which increased by 4.8 million barrels during the previous week, which dropped the price of the commodity with more than 1% during the today’s trading session. Moreover, the crude oil price was under pressure by the increasing of the crude oil production of Nigeria and contradictions between OPEC countries for contraction of oil production. The Brent oil futures were traded at 50.18 USD per barrel, while WTI crude oil futures dropped to 49.29 USD per barrel.
According to preliminary information from API, the US crude oil reserves would rise by 4.8 million barrels, but the official report of the Energy Information Agency (EIA) will be released later today. Another growth will push additionally the price of commodity down.
The market participants are also closely monitoring the disputes in OPEC around the planned production cuts. Iraq, which is the world’s second largest oil producer in OPEC, asked to be excluded from the agreement of production decrease, as the country needs money for war against ISIS.
Another OPEC members, Libya and Nigeria, probably will also not participate in the agreement. Also the countries like Iran, Venezuela and Indonesia will practically not reduce their oil production due to debt crisis and budget deficits.
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