Oil: an overview of the market situation

The cost of WTI crude oil rose moderately today, heading for its second weekly increase, which helped to positive GDP data USA. Prices for Brent, the meanwhile, fell slightly.

As noted earlier, the United States Department of Commerce to improve the estimate of GDP growth in the second quarter of 2014 from 4.2% to 4.6%, based on an annual rate. Revision index coincided with the consensus forecast of analysts. Thus, the rise of the American economy in the April-June was the highest since the fourth quarter of 2012. Rise of the index PCE Core which closely tracks the Federal Reserve System in the assessment of the risks of inflation in the second quarter amounted to 2%. The rating index remained unchanged, as expected. In the first quarter, the indicator rose by 1.2%. Consumer spending, which accounts for 70% of America's GDP in April-June rose by 2.5% in terms of annual growth after an increase of 1%. Experts expect an increase in estimates from 2.5% to 2.9%.

"Improving the economic situation in the United States should have a positive impact on the fundamental prospects," - said Jean Makdzhillian, an analyst and broker Tradition Energy. - "The market is trying to stabilize.

Higher prices also contribute reports that air strikes on eastern Syria, where rebels are based Islamic state, occurred in the major oil fields in the country. But concerns about possible supply disruptions receded in the face of large-scale global production, as Libya has increased volumes despite the economic slowdown in Europe and China. In addition, on Thursday, Saudi Arabia, the world's largest oil exporter, said in August pumped 9.597 million barrels of oil per day. Although the volume decreased by 408,000 barrels per day from about 10 million barrels a day in July, the amount of crude oil supplied to the market, has reportedly increased to 9.688 million barrels per day in August.

Meanwhile, we add that Iran today urged OPEC jointly keep oil prices from falling further, but did not find understanding among the participants of the cartel, whose budgets are less dependent on oil prices. "Given the downward trend in prices, OPEC members should reduce production to avoid further price instability" - proposed Iranian Oil Minister Bijan Zanganeh. Iran's budget to the greatest extent among the 12 OPEC countries depend on world oil prices, so Iran, as a rule, in favor of measures to support prices. Others are members of the organization have not yet expressed concern decline in prices.

The cost of the November futures for the American light crude oil WTI (Light Sweet Crude Oil) rose to $ 92.83 a barrel on the New York Mercantile Exchange (NYMEX).

November futures price for North Sea Brent crude oil mixture fell $ 0.24 to $ 96.75 a barrel on the London exchange ICE Futures Europe.