Oil quotes show negative dynamics

Oil prices rose above $ 50 a barrel for the first time in nearly seven months, but then again returned to negative territory on the background growth of the US dollar.

In recent weeks, crude oil rose in price against the background of supply disruptions, mainly due to the decrease in supply of raw materials from Canada due to raging forest fires and Nigeria because of the unrest. Reduction of oil reserves in the US also increased the hopes of beginning to restore the balance in the market. Yesterday the US Department of Energy reported that in the week ended May 20, commercial crude oil inventories fell by 4.2 million barrels, while analysts had expected a decline of 2.5 million barrels. However, gasoline stocks last week rose unexpectedly, as demand declined. After Memorial Day in the US should begin the season of active road trips, and a relatively low consumption can put pressure on prices. Gasoline inventories in the US rose by 2.043 million barrels to 240.111 million barrels. Distillate stocks fell by 1.284 million barrels to 150.878 million barrels. Workload refinery in the United States decreased to 89.7% from 90.5% a week earlier. Oil in the US last week fell the 11th week in a row, reaching 8.8 million barrels per day.

However, analysts note that many of the supply disruptions are temporary. Higher prices could also hinder the recovery in the long term, as they encourage US producers to increase production. Meanwhile, experts believe that when the levels of $ 51- $ 52 oil prices may fall again by about $ 6- $ 10. In this case, investors may be more prone to alignment positions or profit.

Important market participants also switched to the meeting of representatives of the OPEC countries, which is scheduled for June 2nd. Discussion will focus on the possibilities of raising prices and stabilize the market.

WTI for delivery in July fell to $49.65 a barrel. Brent for July fell to $49.50 a barrel.