Dynamics

Quotations in the oil market on Wednesday August 19 showed the highest closing price for the futures oil supply in the coming month to June 12 due to a significant reduction in stocks of petroleum products in the United States, as well as the falling dollar and the positive sentiment on the stock sites world.

At the New York Stock Exchange NYMEH cost of the September futures for U.S. light crude oil rose by 3.23 dollars and its price, therefore, amounted to 72.42 dollar per barrel.

At the ISE Stock Exchange in London mark Brent oil price rose to 74.35 dollars per barrel.

Causes

On Wednesday August 19, quotes in the market of black gold has risen in price due to a significant reduction in stocks of petroleum products in the United States for the past week, despite the anticipated growth, and on the background of the positive trend of quotations of shares on stock markets because of good corporate data. For example, oil reserves according to the U.S. Department of Energy, declined to 8.397 million barrels, gasoline stocks fell by 2.177 million barrels, distillates stocks fell by 0.65 million barrels, the load factor refining capacity has increased to 84%. From the news it should be noted that Gazprom and the Turkish Petroleum Corporation are to join efforts for the exploration, development and exploitation of hydrocarbons in third countries. Intergovernmental Protocol signed during the recent visit of Russian delegation in Ankara, the establishment of several joint ventures. Experts also tend to believe that at the moment, the cooperation is directed primarily at consolidating the relations between countries, rather than the extraction of commercial gain. Russia and Turkey were in favor of joint ventures between Gazprom and the Turkish Petroleum Corporation for exploration, development and exploitation of hydrocarbons in third countries. The parties intend to establish a working group which will analyze the possibility of building a refinery and joint marketing of petroleum products in third countries. Also, Turkey, by 15 August to give Gazprom a prospecting permit for the pipeline Southern stream.

What to expect?

The main positive factor in the market of black gold is a sudden significant decrease in stocks of petroleum products in America for the Institute of Oil and Ministry of the United States. His contribution to growth made a positive mood on stock sites, as well as the fall of the dollar across the spectrum of the market. The level of 76 dollars per barrel will be the peak for the market in the medium term, until we see a new decline in stocks.

What is fear?

negative side for the black gold is a significant increase in the last trading session in the investigation, enabling the output data from the United States, which may encourage investors to lock in profits most open long positions.

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