Oil: an overview of the market situation

The cost of oil futures declined markedly today, being at the same time below $ 103 (brand Brent) and $ 97 (brand WTI), as weaker-than-expected data on the United States and Germany stressed the weak demand. However, the negative trend in oil quotations caused entrenched fears of oversupply of oil on the world market due to the fall in global energy demand.

Today's statistics showed that the German economy shrank in the second quarter for the first time in over a year, while France has lowered growth forecasts for this year and the next year after its economy has not grown in April-June.

Meanwhile, add that new applications for unemployment benefits in the United States rose last week but remained near eight-year lows. The number of initial claims for unemployment benefits rose by 21,000 and amounted to a seasonally adjusted 311,000 in the week ended August 9, the Labor Department said Thursday. It was more than 307,000 new applications for Economists, and reached its highest level since June.

The dynamics also affect expectations of the opening of Libya's largest oil export terminal. According to the Libyan National Oil Corp., the country's largest oil terminal, located in the port of Essaouira, Cider, will resume in the coming days. Currently in Libya operate all other terminals except Az Zuvaytiny where operations are suspended due to a labor dispute.

Market participants also evaluated yesterday's data from the United States Department of Energy, which showed that the country's oil reserves rose last week by 1.4 million barrels to 367 million barrels. Meanwhile, analysts expect a reduction of 2.05 million barrels.

"Energy data indicated a significant increase in oil inventories in the United States - said VTB Capital analyst Andrey Kruchenkov in London. - As the end of summer and the end of the driving season, with the macro-economic indicators and data on economic activity in the country are beginning to weaken. "

The cost of the September futures for the American light crude oil WTI (Light Sweet Crude Oil) fell to $ 96.30 a barrel and then dropped to $ 97.25 a barrel on the New York Mercantile Exchange (NYMEX).

September futures price for North Sea Brent crude oil mixture rose $ 1.45 to $ 102.43 a barrel on the London exchange ICE Futures Europe.