Commercial oil reserves in the United States last week rose 3.614 million barrels to 433.775 million barrels. This significantly exceeds the expectations of analysts, predicting an increase in reserves by just 900 thousand barrels.
Oil prices fell over 3% because of fears about weakening global demand for energy with simultaneous supply increase. The collapse of the quotes accelerated after the publication of the US Department of Energy Department, which showed an increase in oil reserves in the country. Bloomberg reported this on Wednesday, March 5.
May the Brent Oil Futures in the Ice Futures London Exchange reduce $ 2.28 (3.21%) to $ 68.76 per barrel.
April futures at the WTI at that time fell $ 2.62 (3.84%), up to $ 65.64 per barrel.
According to the US Department of Energy, commercial oil reserves in the country last week have increased by 3.614 million barrels to 433.775 million barrels. This significantly exceeds the expectations of analysts predicted an increase in reserves by just 900 thousand barrels, according to the trade economy.
The official data of the US Department of Energy is different from the assessments of the American Institute of Oil, which previously reported a reduction in stocks of 1.46 million barrels.
Overall, the situation in the oil market is becoming more “bear”, says Stephen Innes, SPI asset management partner, quoted by the Marketwatch.
“The pressure from the expected increase in OPEC+ production and the uncertainty of the U.S. economic growth will probably determine the direction of oil prices in the coming weeks,” the expert added.
At the beginning of this week, OPEC+ confirmed plans for gradual removal of voluntary oil -production restrictions. Meanwhile, the trade wars initiated by US president Donald Trump, have adopted fears about reducing economic activity.
As you know, US president Donald Trump called Saudi Arabia and OPEC to reduce oil prices. In his opinion, it will help to quickly end the Russian war against Ukraine.
Ukraine recommends set the maximum price for Russian oil for $ 30 per barrel.
Source: korrespondent
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