Oil under pressure from production growth lancelike
The price of Brent crude oil on Tuesday 12 August has decreased relative to the previous close of 0.1% to 58,52 dollars per barrel.
The market of “black gold” remains under the influence of contradictory factors of dynamics of quotations. Thus, the American US Department of energy has estimated that shale oil production in September at the largest fields will rise to 85 thousand barrels (1.1%) and up to 8,768 million barrels per day on a monthly basis. This puts pressure on the price of oil.
The greatest production growth it is expected in the American field, Permian, and make it 75 thousand barrels to 4,423 million barrels per day.
On the other hand, Saudi Arabia in preparation for the IPO of Saudi Aramco makes every effort to maintain a high level of oil prices, as this is the main factor determining the fair valuation of oil and gas company.
Undamped in recent days, attempts of growth of the oil market helped one of the traders Forex Club earn in a day more than 7 thousand dollars in long positions in futures on the mark Brent.
Meanwhile, evaluating the increase of shale oil production, US Department of energy hopes to increase in September, production of gas by 729 million cubic feet to 81,595 billion cubic feet per day.
The number of uncompleted wells in the U.S. decreased in July to only 100 pieces 8108. A large number of incomplete wells (drilled but uncompleted wells, DUC) – drilled, but not yet equipped for production allows U.S. companies quickly and in large volume to increase production when market conditions improve of energy.
Saudi Aramco, in turn, is struggling for market share, and in September will increase the capacity of the oil pipeline “East – West” at 2 million barrels a day to 7 million barrels, said chief financial officer Khalid al-Dabbah. This is done to ensure the reliability of supply and increase oil exports from the ports of the red sea, reducing their terminals in the Persian Gulf. Tensions between the US and Iran and the vulnerability of the oil transportation through the Strait of Hormuz th in connection with this tension makes the Saudis look for ways to get around.
The Euro against the dollar stabiliziruemost above the level of 1.12. Investors are waiting on the background of geopolitical risks in Hong Kong and Argentina, and while ignoring the weak macroeconomic data for the Euro area.