Oil prices drop after rise in the first eight sessions, Brent at $60,96 per barrel.
Oil prices falling on Thursday after rising during eight previous sessions, which was the longest for 18 months and returned the market to a bullish trend, informs Rus.Media.
The increase in the cost of Brent oil with an 18-month low set on December 24 exceeded 20%, WTI reached 23%.
The cost of the March futures for Brent crude on London’s ICE Futures exchange is $60,96 per barrel, or $0,48 (0,78%) below the closing level of the previous session. On Wednesday, the contract rose $2,72 (4,63%) to $61,44 per barrel, the highest since mid-December.
Futures for BRENT oil for February in electronic trading on the new York Mercantile exchange (NYMEX) by this time fell by $0,52 (0,99%) to $51,84 per barrel. At the end of trading on 9 January contract rose in price by $2,58 (5,18%) – to $of 52.36 per barrel, the highest since December 13.
Support for the oil market has had a optimistic traders regarding trade negotiations, the US and China, as well as the strong reduction of oil production by OPEC countries.
Trade negotiations between Washington and Beijing ended on Wednesday on an optimistic note, and experts expect that in the next few weeks, the parties sign the final agreement, writes MarketWatch.
It is hoped that the agreement will be signed before March 2 – the end of a three-month “truce” declared by heads of two countries after a meeting in Buenos Aires. In the office of the U.S. trade representative Robert Leitheiser reported that the parties discussed the substantial increase in Chinese buying of U.S. agricultural products, energy and industrial products.
Meanwhile, the Minister of energy of Saudi Arabia Khalid al-falih said on Wednesday that it agreed in December OPEC+ reduction of oil production by 1.2 million b/d will be more than enough to bring the market into balance.
It is estimated that oil exports from Saudi Arabia in January, will amount to 7.2 million b/d in February will be reduced to 7.1 million b/d.
According to S&P Global Platts, OPEC countries reduced oil production in December to 630 thousand barrels to the lowest in six months of 32.43 million barrels.
“The oil market is receiving support for the bill signals a more significant reduction of exports of Saudi Arabia than the agreement provided for OPEC+, – WTRG Economics analyst James Williams. – Trade agreement between the US and China to support the Chinese economy and boost demand for oil.”