Oil again traded in the red zone

Oil prices have fallen by about 2 percent after data pointed to an increase of oil reserves in Cushing terminal, and Iraq reported an increase in the volume of oil exports.

Genscape company reported today that for the week (Wednesday) oil reserves in Cushing terminal rose 255,804 barrels. Increased reserves were recorded, despite the fact that TransCanada Corp, Saturday does not use the Keystone pipeline, which passes the oil in Cushing and Illinois. Earlier Genscape stated that within five days (Tuesday) in Cushing inventories fell by 481,485, apparently due to the closure of Keystone on the background of a potential leak. But it was not enough to offset the total inflow for the week. "I believe that investors had expected even more of an impact from the closure of Keystone", - said a trader.

The increase in Iraqi oil exports also highlighted the global overproduction, despite yesterday's positive report to the US government, which has allowed oil prices to grow by almost 5 percent. Today's state-owned South Oil announced that oil exports from Iraq's southern ports rose to 3.494 million barrels a day in April from 3.286 million barrels a day in March. "We continue to enjoy yesterday's data from the US Department of Energy, but it is clear that the problem of excess supply and inventory record is maintained," - said economist at ABN Amro.

Pressure on the quotes also provides reduction of the probability of reaching an agreement to limit production growth. Over the past two months, oil prices rose on hopes for an agreement leading oil-producing countries to restrict oil production. A number of key countries, is expected to hold a meeting in Doha on 17 April to discuss the plan.

However, there are doubts about the participation in the meeting, Saudi Arabia and Iran. Against this background, the economists point out that an agreement on the freezing of production in the best case would be inappropriate and does not affect the offer prospects

WTI for delivery in May fell to $37.57 a barrel. Brent for May fell to $39.63 a barrel.