The price of oil lost per day 5%

2018-10-24 12:06:01
Machine translation
The price of oil lost per day 5%

on Tuesday, oil prices fell sharply on the news about the intention of Saudi Arabia to increase oil production to balance the market.


the day the December futures on Brent oil fell by 4.35 $/barrel to 76.05 $/barrel.


in electronic trading On the new York Mercantile exchange December futures on WTI fell by 3.7 $/barrel to 66,57 $/barrel.


the forum of investment projects, held in Riyadh, the Minister of energy of Saudi Arabia Khalid al-Falh announced intentions to increase daily oil production by 1-2 million barrels to avoid shortage in the market.


the Traders are worried announced in November the introduction of us sanctions against Iran, which could significantly reduce the amount of oil on the world market.


in addition, the market awaits a report on oil reserves in the US that probably during the week rose by 3 million barrels. If this is confirmed, then this will be the fifth in a row, which was not observed from March 2017.


Another adverse factor for oil prices was the fall in major world stock indices. On Tuesday, Asian indices lost over 2%, European 1%, the U.S. is 1.5%.


Depreciation of oil will put pressure on prices, "energy" crops, in particular canola, corn, soybean and palm oil used for biofuel production. Reducing demand for these crops from the fuel industry against the background of record crops of soybeans and corn will lead to a significant drop in prices.

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