World oil prices fall on fears of investors concerning increase in the production of “black gold” in the United States, according to the auction.
As of 09:08 the cost of the August futures for North sea petroleum mix of mark Brent dropped to 49.88 USD per barrel. The price of July futures on WTI have fallen to 47,95 per barrel.
World oil prices drop as investors worried about the Outlook revision regarding the production of “black gold” in the United States. The energy information administration of the country energy raised its forecast compared with may oil production in the United States to 9.3 million barrels per day in 2017. It is expected that daily oil production in 2018 will reach 10 million barrels, which exceeds the previous record for oil production at 9.6 million barrels per day in 1970, writes The Wall Street Journal.
However, analysts at Capital Economics believe that the growth of oil production in the United States probably will fall soon, the newspaper notes.
Weekly data of US Department of energy on stocks of “black gold” in the country will be published later on Wednesday. Experts expect that commercial oil stocks in the United States (excluding strategic reserves) for the week ended June 2, decreased by 3,464 million barrels, or 0.68% to 506,44 million barrels.
Support for oil prices has provided data from the American petroleum Institute (API) to substantially reduce the reserves of this raw material in the United States. According to the API report, crude inventories declined by 4.6 million barrels for the week ended 2 June. The analysts expected reduction of the indicator by 3.5 million barrels.