On Friday oil prices has backed down to continue its losses for the third day respectively, record the lowest level in more than one week, with renewed the fears about the acceleration the production in the United States, and this overwhelmed on the effect of decreasing the American crude stocks to the lowest level in five months, and the prices have faced a negative pressure and OPEC production increased for the second month respectively, and Russian remarks rejected deepening the amount of international decreasing deal with OPEC, and the traders are waiting today for the American drilling rigs data.
At 12:35 GMT the American crude has backed down to the level 44.50 USD for the barrel from the opening level 45.34 USD, and record the highest level 45.40 USD, and the lowest level since 28 of June 44.05 USD.
And Brent crude has backed down to the level 47.10 USD for the barrel from the opening level 47.88 USD, and record the highest level 47.97 USD, and the lowest level since 28 of June 46.62 USD.
The American crude oil has ended the trading with a decreasing by 0.6%, and Brent contracts have lost by 0.8% “August delivery”, in second daily losses respectively, after the production has increased in the United States.
The American energy information management has announced yesterday about increasing the production by 90 thousand barrels daily, for the week which ended in 30 of June, to the total 9.34 million barrels daily, and that’s the biggest production increase since the last January.
The production has decreased last week by 100 thousand barrels daily to 9.25 million barrels daily, due to the Maintenance work in Alaska and the effect of tropical storm Cindy.
And about the crude stocks, it decreased last week by 6.3 million barrels, and the expectation is more than the decreasing by 2.4 million barrels, to record the total 534 million barrel daily and that’s the lowest level since the week which ended in 27 of January.
And the oil prices are facing lately a negative pressure after the increase in production of the countries exporting oil organization “OPEC” for the second month respectively, added to Russian officials remarks rejecting deepening the amount of international decreasing deal with OPEC,
According to some first data OPEC production has increased by 210 thousand barrels in June to the 32.54 million barrels daily, in a second monthly increase respectively, and that’s because of the increasing production acceleration in Libya and Nigeria, and increasing the production in KSA by 90 thousand barrels daily.
An official in the Russian government said that his country wants to continue the current spending to decrease the international production, and any additional restrictions for the decrease will send a wrong message to the market.
And he said that deepening the amount of decreasing will reflects the OPEC tension and its allies, with an explanation the current deal with the decreasing by 1.8 million barrels daily until March, that’s not enough for prices support and the balance.
“Baker Hughes” company for the oil services will issues today a number of working drilling rigs in shale oil region in the United States, and it has recorded last week the first decrease in 24 weeks, and a total of rigs right now is 756 rig.
Professional Trader and Analyst at TradingBroker.co.uk
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex & Binary Options trading companies in both English and Arabic on a daily basis.