Oil began the year 2019 fall

  • And
  • +A

Stock Markets Group – oil Prices fell in the first trading day of 2019 on concerns about rising raw material extraction in the United States and Russia.
The rate of Brent crude oil fell 0.97 percent to $ 53,28 per barrel, while futures West Texas Intermediate (WTI) declined 0.70 percent to 45.09 dollars a barrel.
The panic in the market has intensified after it became known that manufacturing activity in China in December, the world’s largest oil importer, fell for the first time in 19 months.
Manufacturing PMI Caixin/Markit fell to 49.7 from 50.2 in November amid the ongoing trade wars between the two biggest economies, US and China.
As the oil price came under pressure in the first days of the new year due to the fact that in October, production in the US reached a record level, Iraq continues to increase the export of “black gold” on the markets, as oil production in Russia reached a post-Soviet high of 2018.
Recall that the futures price for WTI in the past year fell by almost 25%, while Brent prices fell by 20% due to fears of a global economic slowdown against the background of numerous negative factors, including trade conflict between the US and China, as well as the expectation of a Brexit.
__________
Igor Gross,
Analyst of commodity markets,
Stock Markets Group