Oil price failed to hold the level of 65$ per barrel despite a report of U.S. Department of energy
Stock Markets Group – the Price of oil falls, the report of the U.S. Department of energy could not for long maintain the cost of “black gold”.
15:45 GMT., may futures price of Brent crude oil on the new York Mercantile exchange fell to $64 per barrel, losing nearly 0.5%.
US Department of energy, published a weekly report on oil stocks, where growth amounted to 2.4 million barrels to 423,5 million barrels. It was smaller than the previous data that the market had received the previous day from the American petroleum Institute (API). The report suggested the increase of oil reserves to 2.4 million barrels.
However, even this relative positivity was not able to keep oil prices above $ 65$ per barrel, and today for lunch oil lost nearly 1$.
Experts note that the era of high oil prices ended in 2017, and now the market adjusts to new realities.
The growth of shale oil in the US has a significant impact on world prices, along with falling demand from such major consumers as the United States and China, most likely this year we will not see new highs for the asset.
On this scenario, said Director General of British Petroleum Robert Warren Dudley at CERAWeek energy conference held in Houston
“It seems that we have entered the era of oil prices at $50-$65 per barrel, which may continue for several years”
The situation with OPEC+ is also starting to call out some concerns. Seeing that oil prices fail to respond to deterrence of the cartel, some countries are actively considering withdrawal from the agreement. If agreements are revoked, then the oil market will begin a serious fall that could derail the current value of “black gold” to $20-$30 per barrel.
You should not also forget that the technology world is moving towards “clean energy” and this in the long term will also exert pressure on the commodity market.
Analyst of commodity market
Stock Markets Group