Brent: According to API Oil Reserves in the USA Have Grown
According to the data presented by the American Petroleum Institute (API) oil reserves in the USA grew against last week (+3.1 million barrels against the rise of 6.2 million barrels a week earlier).
Today at 16:30 (GMT+2) US Energy Department will issue the data on changes in commercial oil inventories for last week.
It is expected that the inventories will grow by 2 million barrels. According to some estimates the rise may vary from +3.5 million to -1.75 million barrels.
Recently, the data on oil reserves in the US storehouses has strong influence on oil prices.
Crude oil inventories in the warehouses have reached almost 530 million barrels, which is the level of the thirties of the last century.
The fall of oil prices at the beginning of this trading week was caused by the failure of meeting of the large oil producers in Doha. However, oil prices have regained losses by the end of yesterday due to the strike of oil workers in Kuwait. This news triggered the rise in oil prices above the level of 44 USD per barrel, due to fears of possible disruption in oil supply. Today, the prices of oil are going down since the opening of the trading day, as the strike in Kuwait has finished, while oil inventories in the USA have grown up.
The biggest issue today is the excess of supply over the demand. The oversupply is likely to increase especially because of the position of Iran, which plans to increase oil production to the prior to sanctions level of 4 million barrels a day. The increase in demand of oil is the only positive factor, which can balance supply and demand, and have strong effect of the further rise in oil prices.