Oil: an overview of the market situation

Oil prices, while demonstrating its second-session rise in a row, which is associated with reduced rates of China, as well as speculation about production cuts by OPEC.

China's central bank said that the lowering of interest rates, carried out for the first time in more than two years, there was no change in the "prudent monetary policy" and the need for more aggressive measures not. The People's Bank of China said that the economy is experiencing a downward pressure, which is an additional burden for small businesses. However, economic growth is still relatively high, and inflation is still low, the bank noted.

Regarding the situation in OPEC production, on the eve of Venezuelan Foreign Minister Rafael Ramirez has promised that the country will reduce oil production if OPEC quota reduction treaty at a meeting on November 27. Venezuela, Libya and Ecuador earlier urged fellow cartel to agree on reducing production to stop the fall in prices.

"In the last day there was a lot of rumors about what the solution might take at the forthcoming meeting of OPEC", - said the managing director of IHS Victor Shum, adding that these rumors have caused a rise in prices, but OPEC countries will be difficult to agree on reducing production.

It is worth emphasizing that the concern over the weakening global demand and the likelihood that OPEC producers do not reduce the volume of production, puts considerable pressure on oil prices in recent months.

Support prices have also yesterday's US data. Recall Philadelphia Fed manufacturing index increased to 40.8 this month from 20.7 in October. Analysts had expected the index to decline to 18.9. Another report showed that home sales in the secondary market in the US rose in October to a 13-month high, reaching 5.26 million. Units.

Cost January futures on US light crude oil WTI (Light Sweet Crude Oil) rose to 76.23 dollars a barrel on the New York Mercantile Exchange.

January futures price for North Sea petroleum mix of mark Brent rose $ 0.21 to $ 79.97 a barrel on the London exchange ICE Futures Europe.