Oil started the trading week with a decline. There were several reasons for that, for example, a failed attempt to create a governmental coalition in Germany. At the same time, international investors are cautious in advance of the forthcoming OPEC summit in Vienna scheduled for November 30th.
On Monday, Brent futures for January delivery lost 0,83% and dropped down to $62,2/b. WTI futures for January delivery lost 0,58% and dropped down to $56,38/b. So, why were oil prices going down earlier this week if the OPEC+ deal is believed to be extended for at least Q1 2018? Experts say it’s all about speculators as well as the worsening of the tensions between the OPEC and American shale oil producers.
More than a week ago, the API predicted a sharp increase in crude oil inventories by as much as 6,5 million barrels up to 461,8 million barrels. This forecast was different from the one given by independent observers as they predicted a drop by 2,2 million barrels. At the same time, the U.S. oil production increased by 25K b/d up to 9,645 million b/d.
