Oil price: No supporting statistics above 67 dollars not to go
The price of oil Brent on Tuesday, July 16 increased relative to the previous close of 0.2% to 66,62 USD per barrel.
The market of “black gold” ranges without certain dynamics at the level of 66.5 dollar. Conflicting signals do not give reason for the action. So, after the passage of hurricane “Barry” in the Gulf of Mexico oil platform staff returns, and production of oil is recovered, which reduces concerns about energy shortages in the U.S. market.
The participants continue to react to mixed data on the Chinese economy: the lowest for 27 years, the GDP growth rate and higher-than-expected growth in industrial production. Finally, the persistence of tension around Iran in connection with its nuclear program, geopolitical risks supports the reduction of oil supplies to the world market.
Meanwhile, the energy information administration of U.S. Department of energy (EIA) estimated that production of shale oil in the largest oil and gas deposits of the United States will increase in August against July, 49 thousand barrels per day (0.6 percent) to 8,546 million barrels per day.
The extraction on the largest Deposit of Permian will increase by an estimated 34 thousand barrels per day to 4,206 million barrels per day for Niobrara – 10 thousand to 746 thousand barrels at Bakken – 7 thousand to 1,442 million barrels per day.
The number of uncompleted wells (drilled but uncompleted wells – DUC) in the fields of the largest oil and gas producing regions of the United States in June has decreased over the month by up to 41 of 8248 units. However, such a high reserve DUC allows the American oil companies quickly and on a large scale to increase production amid rising oil prices.
The Euro against the dollar is reduced towards the level of 1.12. Bidders forex play weak data on the index of trust of investors to economy of Germany, which in July fell to minus 24.5 from minus 21.1 per a month earlier with the expectations of experts decline to minus 22.1 points.
In addition, the dollar received support from the June growth in retail sales in the U.S. by 0.4% (month-on-month) in December, increasing just 0.1%. Excluding sales of automobiles and components index increased by 0.4% compared with may.