Price of benchmark crude oil keeps rising, on Wednesday, June 08, it was trade close to maximal points for 11 months after publication of data on stocks of fuel in the United States of America.
At London stock exchange ICE Futures quotations of August futures of Brent oil blend have risen by 0.91 USD (1.77 percent) – to 52.35 USD per barrel.
Meanwhile, New York Mercantile Exchange (NYMEX) has shown increase of July futures of WTI blend by 0.76 USD (1.51 percent) – to 51.12 USD per barrel.
According to Energy Information Administration (EIA) of US Department of Energy, last week commercial stocks of “black gold” have reduced by 3.2 million barrels, which is almost the same as predicted by specialists, questioned by the Wall Street Journal (their prediction amounted to 3.1 million barrels).
Support to global market of petroleum is given by signals of fundamental correction of balance between supply and demand, as well as interruptions in supply in different corners of the world.
Rebel attacks on petroleum infrastructure of Nigeria have provoked decline in the country’s recovery by 10 percent last month, which is proved by an enquiry held by Bloomberg agency. Production has dropped by 160 thousand barrels per day – to 1.45 million barrels, which is the lowest volume for almost thirty years.
As a result, last month OPEC recovery also dropped to about 32.71 million barrels per day in comparison to 32.83 million barrels per day in April.
As assessed by EIA, forest fires in Alberta, location of oil-bearing sands, may lead to reduction of oil recovery in June by about 400 thousand barrels per day. In May drop has amounted to about 800 thousand barrels per day, whereas at the height of the disaster it exceeded 1.1 million barrels per day. However, recovery is slowly resumed in the region; certain time is needed for production to return to its volumes before fires started.
Next year’s forecast has also risen a lot, namely, to 45.95 USD from 42.5 USD per barrel.
Recovery of the cost of Brent oil blend was supported by minor decline of supply from OPEC and non-OPEC countries. Smaller recovery in some OPEC countries has partially compensated the increase of Iranian production. Although oil recovery is maximal, the Russian Federation and Saudi Arabia have kept it stable in February-March, as stipulated in their agreement with Qatar and Venezuela , in order to maintain oil recovery at January level.
