The price of oil fell 4% after the statements of Saudi Arabia to increase production
On Tuesday, oil prices fell by 4%, reaching its lowest since early September levels on the verbal interventions by Saudi Arabia, statements which always have an impressive impact on the market. So, touching the mark of 75,65, Brent closed below the level of 76 and is making half-hearted attempts recovery on early trading on Wednesday.
The oil Minister of Saudi Arabia Khalid al-falih stated firmly that OPEC countries and their partners are ready to increase production to offset the declining global supply after the imposition of sanctions against Iran. The market reacted very rapidly, despite the recent conversations about the limited free capacity in the cartel. And in General such aggressive comments of the Saudis, which is usually fed by the rising prices looked pretty strange.
But after that the market of black gold has experienced another shock. According to the API, last week crude oil inventories in the U.S. increased nearly 10 million barrels, against the forecast of growth of 3.5 million to put it Mildly, not the most comforting figures before today’s official report the Ministry of energy.
However, if the figures of the Department would be less aggressive, and OPEC producers will rush with the softening statement yesterday Saudi Arabia and will return to the market fears of a shortage of supply due to Iran depreciating Brent can attract the buyers and to return above the level 77 and then 78.
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