Oil prices fell moderately today

The cost of oil futures fell sharply early in the session on the background of the disappointing outcome of the negotiations of the largest oil producers. However, after the initial reaction of investors are back to buying, which helped win back much of the oil products.

Recall hopes that producing countries will be able to agree on a freezing of raw material production, it was one of the main factors that contributed to the rise in oil prices by 50% from the February lows. However, experts point out that although the meeting in Doha have not been successful for a few positive points remain the market. First, oil producers immediately planned a new round of negotiations in the format + OPEC after the June summit of the cartel. " In addition to Iran, the summit in June will have time to increase the export of oil and subsequently to participate in the production of frozen. However, in the near future the market will be dominated by negative sentiment oil, as investors pinned high hopes on the talks. Now some are now awaiting a new fall in quotations to $ 30 per barrel. "Technical support level is at the level of $ 38 per barrel, - said an analyst at IG Plc Angus Nicholson. - If the price drops below, we are waiting for a significant collapse of quotations this week. If the oil has recently really grown exclusively on the expectations of the production freeze agreement, then drop to 30 dollars seems very likely. "

Meanwhile, Goldman Sachs analysts recognize that the failure of negotiations is a negative factor for the market, however, indicate that the unexpectedly sharp decline in production in Kuwait gives investors some hope. As it became known, due to the large strike of workers of oil and petrochemical industries, oil production in Kuwait declined by more than 60% from March levels, to about 1.1 million barrels per day

Hedge funds reduced their bets on falling oil prices in the last reporting week before the oil-producing countries meeting in Doha, the data showed Commodity Futures Trading Commission US. At the end of trading on Tuesday a short position of hedge funds in the futures and options on WTI crude oil decreased by 18% or 18 620 contracts (in thousand barrels each). Betting on the rise in prices have increased by 2237 contracts (0.8%). Betting on growth proved more bets on the fall in 215,630,000 barrels.

WTI for delivery in May fell to $41.12 a barrel. Brent for May fell to $43.22 a barrel.