Brent: US crude inventories may increase again

Brent: US crude inventories may increase again

31 August 2016, 13:14
PCM-Brokers
0
28

TRADING RECOMMENDATIONS

Today at 14:30 (GMT) US Department of Energy publishes the official weekly report on US oil storages and petroleum products. As the average analysts say the oil market, commercial oil reserves in the vaults of the country in the week 20 - 26 August rose by 1.2 million barrels (previous increase of 2.501 million barrels). As reported yesterday, the American Petroleum Institute (API), increase in commercial stocks of crude oil last week in the US amounted to 942,000 barrels. At the same time gasoline inventories fell by 1.6 million barrels, while distillate stocks rose by 3 million barrels.

Thus, US crude stocks, which are significantly above the level of 500 million barrels of crude oil over the past 80 years, the rise again.

This is particularly conducive to the growth in the number of active US oil drilling rigs. Their number today is 406 units. US domestic oil production is steadily increasing, which could lead to a subsequent significant fall in prices.

It offers the world's oil still exceeds demand. Oil market analysts doubt the positive outcome of the upcoming OPEC meeting in September, Algeria.

At the same time, the US dollar is trading at the highest level for the last three weeks. The Fed may raise interest rates in September, signaled as the representatives of the US central bank held in Jackson Hole conference.

Janet Yellen and her deputy, Stanley Fischer, said that the economy is strong enough to make this year could raise interest rates. The situation is raising prices of commodities bets, including oil, are reduced.

 

Share it with friends: