The crude oil is traded in a narrow range on Tuesday before Christmas and New Year holidays, as investors close their positions without expecting to take up new ones before the beginning of 2017. The US light WTI crude depreciated by 0.13% to 52.99 USD per barrel, and the price of European Brent oil grow by a modest 0.04% to 54.94 USD per barrel.
The traders say they are beginning to clear their balance sheets before Christmas Eve and Christmas, and before the week before the New Year. As a result, do not expect major movements in the price and this week’s trade will likely remain timid. We can safely say that if there are no dramatic news, Brent oil will be around 54-56 USD per barrel by year-end.
Yesterday was published the news that oil exports from Saudi Arabia fell by 176,000 barrels per day in October. This initial encourage price of the raw material, but the effect weakened because of the increase in exports of refined products. The growing production of refined products in the monarchy is part of a wider trend.
In 2017, Asia is expected to account the largest net increase in capacity for refining products in three years, which encourages demand for crude oil in the largest region consume oil. The increase is within the 1.5% refining capacity in addition to total over 29 million barrels per day.
However, traders do not expect a shortage of supply for Asian refineries, as OPEC protects most of its Asian customers from planned cuts in production.
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