Oil prices are falling. This is according to electronic trading on the London and new York exchanges.
On London’s ICE Futures exchange futures for Brent crude oil with delivery in January has decreased on 0,77%, to $46,50 per barrel.
On the new York Mercantile exchange (NYMEX), the December futures for light oil brand WTI fell by 1.17% to $44,81 per barrel.
Earlier it was reported that the OPEC countries continue to increase oil production despite active negotiations with a view to shorten it. In October, the mining cartel has reached a new historical record 33.82 million barrels per day. This is 130 thousand barrels per day more than in September, and 800 thousand barrels exceeds the level at which the cartel countries have agreed to freeze production at the talks in Algiers in September (of 32.5-33 million barrels per day). It was explained that the new supply provided to the market, Libya, Nigeria and Iraq. Saudi Arabia slightly reduced production, but this reduction is compensated for its allies in the Persian Gulf region — UAE and Kuwait
“If OPEC production will rise to 34 million barrels per day, freezing its volume is guaranteed to cause imbalance in the oil market will remain in 2017-2018”, — informed analysts warned. According to experts, preparing the deal, OPEC has the desired effect is the opposite: all the key countries seek to increase production, to freeze it at the highest levels.
According to the September estimate of OPEC, the oil market has gone out of balance and again there is in excess of the proposal. It is 0.5 million barrels per day by the end of the year will increase to 1 million barrels daily. The demand for its oil in 2017, OPEC is estimated at 32.6 million barrels per day, 1.2 million barrels more than October’s figures.