US producers increase their oil production

The US oil producers is clearly the most satisfied group of high oil prices. The cost of raw materials declined on Friday after it became clear that OPEC and Russia could increase their production. And the latter may be the result of US production growth in an environment of rising production.
US crude oil lost about 1 percent of its value to $66.39 a barrel late Friday, while the Brent fell 0.6 percent to $77.07 and was already more than $3 below its highest since late May.
US oil production is growing at a good pace and weekly data show no signs of slowing down, according to Seaport Global analysts, adding that growth is mainly driven by Texas and New Mexico.
US oil production rose 215,000 barrels per day to 10.47 million barrels per day in March, according to the US energy ministry. Production in Texas rose 4% to 4.2 million barrels per day, while that in New Mexico - by 6.5% on a monthly basis.
Increasing production by US companies in the US is a reality when the market increasingly talks about Russia and OPEC being able to override accepted production constraints. Namely the latter were the basis of the strong rise in oil prices to a maximum of four and a half years.

Oil between $50 and $75 suits everyone

Over the past four days, US crude oil fell nearly 10 percent of the cyclical peak $73 a barrel, reaching yesterday low at $65. This poses the question - has the downward correction of the raw material been exhausted and can it start rising again?
The sharp decline in oil became a reality as a result of the data that Saudi Arabia and Russia are considering increasing production. Both parties signaled some increase in their production.
It is the trade between Russia and OPEC in the past year to curb production, triggering a strong rise in raw material prices.
Experts, however, comment that the potential resistance of some OPEC members against Saudi Arabia and Russia's decision to boost production could lead to a certain return in the price of oil.
After the peak of 115 dollars in 2011, oil was traded in a range between 115 and 75 dollars for 30 months. Such developments would mean oil price rate in the range of between $70 and $50 over the next few years. And that would perfectly suit Russia and Saudi Arabia, according to market observers.
Any oil levels above this range are already leading to some problems for consumers related to inflation, as well as an upsurge in US oil production, which is becoming profitable.
So, it seems very likely that the price of oil will be kept in a relatively narrow range over the coming years.
There are, of course, some analysts who believe that the price of oil will continue to rise and may go beyond that limit. Some of them are experts from Goldman Sachs, according to which there is an essential background for growth in the price of oil.

Oil loses more than $4 on Friday, continues to go down

The price of oil continued with its exceptionally strong depreciation on Friday and the first day of the new week. Brent futures with delivery next month lost $1.1, or 1.4% on Friday's closing level.
US crude oil fell by 1.57 dollars, or 2.3% on Friday's closing level.
Brent and US oil fell respectively by 6.4 and 9 percent of its peak in early May. In China, oil fell 4.5 percent to 459 yuan a barrel (71.83 dollars a barrel).
The rise in oil prices in recent weeks has sparked serious debates among market participants and OPEC members about the impact of oil prices on the world economy, according Chittag Ay, chief economist at Morgan Stanley.
On Friday, Saudi Arabia and Russia, which are considered to be drivers of the oil market, said some oil production growth of 1 million barrels per day was under discussion.
Production cuts were the factor that led to substantial oil prices on international markets.
With the price rise, however, the US producer of US oil is also growing, benefiting from the high oil price.
Oil prices have collapsed after reports that Saudi Arabia and Russia have agreed to increase their production in the second half of the year, ANZ said.
US energy companies have added 15 new field deposits for the week to May 25.

Oil with a strong downturn before Trump-Iran

Oil prices plunged 4% yesterday after media reported that Trump would most likely withdraw from the Iranian deal with the nuclear program.
The question now is how quickly Trump sanctions will be imposed on Iran and whether this will meet market expectations.
According to a report by The New York Times, President Trump has told French President Emanuel Macron that he will restore sanctions to Iran and will impose additional economic sanctions.
Macron has denied this information, quoted by Reuters.
Oil prices will continue to be extremely volatile and to be influenced by news related to Washington-Iran relations.
The Brent lost 2.3 percent of its value to $74.42 a barrel, while US crude futures fell 2.8 percent to $68.73 a barrel.

US vs. Iran: the game begins

The prices for oil on Thursday after correction in the last few days again moved to growth: Brent crude again continues to try to gain a foothold at $75 per barrel, North American oil WTI is in an attempt to overcome the mark of $68.5 per barrel.
The situation in the Middle East continues to worsen: the Iranian issue added to the Syrian issue, full of uncertainty: the peak moment will be May 12, as the question of the possibility of imposing new sanctions against Iran on the part of the US is being resolved because of the reluctance of the oil Middle East giant to meet halfway in the issue of revision of the nuclear deal.
If sanctions are imposed, one of the largest oil producers will again be withdrawn from the game, which can raise the cost of raw materials not only up to $80, but much higher.

Oil prices are stabilizing after the sharp drop

Oil prices stabilized on Tuesday morning after a strong decline in the previous trading session, prompted by expectations of further growth in the extraction of raw materials in the US. Futures for the North Sea Brent blend dropped 0.05 percent to $64.92 per barrel.
Futures contracts for US light oil WTI by this time traded at $61.33 per barrel, which is 0.05 percent lower than the previous closing.
On Monday, both benchmarks fell by about one percent.
Oil prices fell due to fears that the increase in production in the US could lead to an increase in the stock of raw materials in the country, analysts of the ANZ bank believe.
The Energy Information Administration (EIA) in its March review raised the forecast for oil production in the US in 2018. The Office expects that the volume of production of raw material in the US on average will grow by more than 120,000 barrels per day to 11.17 million barrels per day by the fourth quarter of this year. The previous forecast assumed growth to 11.04 million barrels per day.
Moreover, the production of shale oil resources in the US in April will increase by 131,000 barrels per day by March to 6.95 million barrels per day - a fresh maximum, according to the EIA.
The focus of investors' attention is data on weekly stocks of oil and petroleum products in the US from the American Petroleum Institute (API) and official EIA statistics.

Oil with a fall

Oil prices dropped on Wednesday after data suggest US stock growth, and financial markets have fallen as a result of fears of a trade war and the resignation of Trump's economic adviser.
US crude oil futures lost 1.28 dollars of value to a level of $ 61.10 a barrel, or a decline of nearly 2% a day.
Brent futures declined by 1.3 dollars to 64.40 dollars a barrel.
US oil inventories rose 2.4 million barrels last week, which was slightly below the analysts' average expectations of 2.7 million barrels.
Investors, however, sold the raw material as a result of concerns about the state of the world economy, in an environment of increased danger of a world trade war, which is unclear how it will affect the growth of the world economy.
Additional political tensions were also brought after the resignation of President Donald Trump's Chief Economic Adviser.

Oil prices rise fourth consecutive session

Oil is growing in price during the fourth consecutive session against the backdrop of growing demand for risky assets.
The price of April futures for Brent crude on the London Stock Exchange ICE Futures rose by $0.38 (0.59%) - to $65.22 per barrel.
The cost of the WTI futures contract for March in the electronic trading of the New York Mercantile Exchange (NYMEX) increased by $0.41 (0.66%) to $62.09 per barrel.
According to experts, oil prices could again shift to a decrease if another weekly report from the US Department of Energy indicates an increase in oil production in the country. At the same time, the volume of oil produced in the States is already at a record high in history.
At the end of last week, the oil service company Baker Hughes reported an increase in the number of operating oil drilling rigs in the US for the fourth week in a row - to 798.
The indicator mainly reflects the recovery of production at shale deposits. It is expected that by the next month, production at the Permian field will grow to a record 2.99 million barrels per day. With this indicator, the region could take the fourth place among all the OPEC countries.

WTI futures rose in price during Asian trade

Quotations for oil futures WTI rose during Asian trading on Wednesday.
On the New York Mercantile Exchange, WTI futures for December delivery are traded at a price of $57.03 per barrel, up 0.30%. WTI oil found support at $53.99 and resistance at $57.69.
Futures on the USD index, showing the ratio of the US dollar to the basket of the six major currencies, decreased by 0.06% and is trading at around 94.75 dollars.
As for other goods traded on ICE, futures for Brent crude for January delivery increased by 0.16%, reaching $63.59 per barrel, and the difference in price between Brent crude oil contracts and WTI crude oil was 6.56 dollars per barrel.

WTI futures rose on Friday

Quotations for oil futures WTI rose during the European session on Friday.
On the New York Mercantile Exchange (NYMEX), WTI futures for May delivery rose to $52.89 per barrel, up by 0.41%.
WTI oil found support at $52.29 and resistance at $53.76.
As for other goods traded on ICE, futures for Brent crude for delivery in June rose by 0.02%, reaching $55.64 per barrel, and the difference in price between Brent crude oil contracts and WTI oil was 2.75 dollars per barrel.
Futures on the USD index, showing the ratio of the US dollar to the basket of the six major currencies, increased by 0.43% and is trading at around $100.49.

Barclays reduced its target price for oil in 2018 by $10

On Friday, analysts at Barclays (LON: BARC) lowered their forecast for the price of Brent crude oil at the end of 2018, but confirmed the trend in the increase of oil prices.
In particular, analysts have lowered the forecast of oil on the London Commodity Exchange to $67 per barrel from the previous value of $77.
The analysts at Barclays explained, that they maintain their forecast that the price increase will be by $10 higher than the current rate futures.
They also left unchanged the forecast for the average price of a barrel of Brent crude oil for 2017 at $57 per barrel, noting that the forecast for the second quarter was $62.
Analysts called the situation "a game of musical chairs", which will end as soon as the US shale oil producers to increase production, or completed action on the production reduction agreement.
According to the analysts, if OPEC agreement is not renewed, it will decline in 2018, oil prices will be more volatile when stockpiling will continue, as OPEC spare capacity.
British bank's forecast for the price of WTI crude oil was $56 per barrel in 2017 and $65 per barrel in 2018.

Oil in the red on a background of the US production growth

Oil prices fell during morning trading on Tuesday amid rising of drilling activity in the US.
By 6.27 GMT, futures for Brent oil fell by 0.11 percent to $55.17 per barrel.
Futures for WTI US crude at the same time traded at a mark of $52.49, 0.27 percent lower than the previous close.
North Sea oil fell from January's peak by more than 5.6 per cent, WTI - around 3 per cent.
The number of drilling rigs in the United States rose for the week ended 27 January, by 15 units to 566 showed Friday data of oilfield services company Baker Hughes. This is the highest value since November 2015.
Analysts believe that the increase in drilling activity and, as a consequence, production in the US can neutralize the effect of OPEC agreements and non-OPEC countries to cut production.
Brent futures for March delivery today traded at a premium above $2.7 per barrel for WTI, reflecting the balance of alignment between supply and demand on the world market due to OPEC's pact and the excess of the market in US crude because of the continuing growth in the number of drilling rigs.

Investors disappointed with the data on oil stocks

After the first hours of trading on Thursday, the dollar was put under pressure, which lasted several hours, but still managed to recover. At the end of the working day in the United States, oil prices collapsed after oil reserves data in the US (actual decline in stocks was much lower than expected). Brent fell to almost $48 per barrel. Futures for WTI US crude traded at this time about the level of $ 46.49 per barrel, or 1.98 per cent lower than the previous close.

US crude stocks fell for the week ended July 1, with 2.22 million barrels to 524.4 million barrels, reported the Energy Information Administration (EIA) on Thursday. Stocks fell the seventh week in a row.
However, the EIA data practically coincided with a fall of 2.3 million barrels, which was expected by analysts, polled by Reuters, and there were significantly smaller reduction of 6.7 million barrels reported by the American Petroleum Institute on Wednesday.