Oil: а review of the market situation

The cost of oil futures rose today, while reaching the highest level this year amid speculation that growth stocks is beginning to slow.

According to the company Genscape Inc., crude oil inventories in Cushing rose less than 500 thousand. Barrels last week, which is considerably less than the increase that is observed in recent months. In Genscape also reported that in the second half of last week, stocks fell in Cushing. Recall, US Energy Information Administration will release official data on stocks of petroleum products in the environment.

Little support prices also had the decision of the Central Bank of China, which has lowered the reserve requirement of commercial banks by 100 basis points to 18.5%. In this case, Agricultural Bank of China was allowed to reduce the reserve requirement ratio by 200 basis points. Vacant as a result of measures taken means banks will have to submit to increase liquidity and lending of various industries in the country.

In addition, market participants continue to analyze data on the number of drilling rigs in the United States. Recall, according to a report by Baker Hughes, for the week of April 17 in the United States ceased to operate another 34 rigs, their total number dropped to 954. The number of oil drilling decreased by 26 - to 754. The greatest losses suffered drilling in Texas. However, in the largest shale basin - Permian - closed only 6 drill. In general, the rate at which oil shale company rolled drilling due to low oil prices have fallen markedly. At the beginning of the year this week in the US was closed from 80 to 100 drilling. During the year the volume of drilling in the US fell by half. Against this background, the growth of oil production has stopped. "When the US goes into a real decline in production, I think that oil prices still rise. But the prices in the United States are unlikely to be much higher than $ 65, and the price of Brent linger at around $ 70, because even with the reduction of production in the US market will receive enough oil, "- said a senior analyst at CMC Markets, Rick Spooner.

The rise in prices is also linked to the deteriorating situation in Yemen. About 100 people were killed on Sunday in southern Yemen in the fighting between Shiite rebels and supporters Huthis incumbent President Abd Rabbo Mansour Hadi, local media reported. It was noted that the most violent clashes took place near the town of al-Dalia.

May futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 58.20 dollars per barrel on the New York Mercantile Exchange.

June futures price for North Sea Brent crude oil mix increased by 10 cents to 63.66 dollars per barrel on the London Stock Exchange ICE Futures Europe.