Oil: a review of the market situation

Oil prices continued to fall after yesterday's rally, which is associated with an increase in demand on the world market, as well as new forecasts from the Bank of America Merrill Lynch.

As it became known, experts today BOAML lowered its forecast for the price of Brent crude oil at the end of the first quarter of 2015 to $ 31 per barrel

Recall concerns about weakening global demand, coupled with forecasts that the Organization of Petroleum Exporting Countries will not cut production to support oil market, putting pressure on prices in recent months.

The course of trade also influenced the report from OPEC, which lowered the forecast demand for oil cartel in 2015 to 100 thousand. / Sec - to 28.8 million b / d. The main factor in reducing the demand for oil has become the price of oil, which was below expectations, the report said. In December, OPEC has reduced the forecast of demand for crude oil delivered by the cartel, 2015 to 300 thousand. Barrels per day compared to the previously expected index, to 28.9 million b / d. This figure is the lowest since 2003, OPEC believed that global demand next year will grow by 1.2% - up to 92.26 million b / d, an increase of 70 thousand. B / d lower than the previous forecast. In addition, the report of the organization said that the total oil reserves in the developed economies in October amounted to 2.7 billion barrels, or 15 million barrels higher than the average for the past 5 years.

Also, market participants continue to analyze yesterday's Beige Book report. It noted that the decline in energy prices hit the US oil and gas producers, forcing some companies to lay off workers, while others can not get loans.

Many regulators, investors and economists believe that cheap oil and petroleum products in general are beneficial for the US economy, allowing households to spend more money on other products.

In the "beige book" The Fed's monthly report on business activity in the country, according to the testimony of some of the economic recovery. Companies report the Fed - the central bank of the country - that low gasoline prices increased sales of goods in the Chicago area during the holidays and gave people the opportunity to buy cars in the larger district of Atlanta. But the Fed also has a long list of problems caused by more than 50 percent collapse in oil prices since mid-June.

The cost of the February futures on US light crude oil WTI (Light Sweet Crude Oil) dropped to 47.11 dollars per barrel on the New York Mercantile Exchange.

February futures price for North Sea Brent crude oil mix fell $ 0.33 to $ 48.30 a barrel on the London Stock Exchange ICE Futures Europe.