Oil: а review of the market situation

The price of oil has increased significantly today after the largest decline over the past two months after Iran said it would refuse to enter into an agreement, if not sanctions are lifted.

Today, Iranian President Hassan Rouhani said Iran will agree to enter into an agreement on its nuclear program, provided that immediately after signing the document sanctions against the country are lifted. According to Rouhani, all economic sanctions should be lifted immediately - after the signing of a definitive agreement. We are talking about economic sanctions against Iran over its nuclear program.

Also, market participants continue to analyze yesterday's data on oil reserves in the United States. Recall the week 28 March to 3 April oil reserves increased by 10.9 million barrels to 482.4 million barrels, while experts waited for an increase of 3.4 million barrels. The report also reported that weekly growth of oil reserves was the most significant since March 2001. "Total oil reserves in the US are much higher than the five-year maximum weekly reaching new records," - analysts said Societe Generale. According to their data, storage in Cushing capacity of 70.1 million. Barrels filled to 85%.

Rising prices may also be associated with profit-taking on the part of participants, covering short positions. Private investors have also increased the activity of making purchases after prices fall. They are counting on a large-scale recovery in the market, brokers say.

Little impact also had reports that the company UK Oil and Gas Investments found near London deposit with significant oil reserves. According to the company, the estimated oil reserves at the field may be around 100 billion barrels - 158 million barrels per square mile. But can be removed only a small fraction. According to executive director UKOG Steve Sanderson, "is perhaps the most significant discovery" from taking place in the last 30 years on land and in the UK "is of great national importance."

May futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 50.90 dollars per barrel on the New York Mercantile Exchange.

May futures price for North Sea petroleum mix of Brent increased by $ 0.82 to 56.90 dollars a barrel on the London Stock Exchange ICE Futures Europe.