Oil continues to go up after take-off to 10-week high the previous day
Oil prices continue to show an upward mood today after rising to a peak in the last 10 weeks amid falling stocks in the United States for the second week in a row.
The cost of July futures for Brent crude on the London ICE Futures exchange to 8:22 MSK amounted to $of 36.52 per barrel, or $0.77 (2.15 per cent) above the price of closing of previous session. At the end of trading in chtle July contracts rose $1.11, or (3,2%) to $35,75 per barrel, the high from March 11, writes MarketWatch.
Futures for WTI crude oil for July in electronic trading on the new York Mercantile exchange (NYMEX) by this time had risen to $0,73 (2,18%) to $34,22 per barrel. The closing of the previous trading price of the contracts rose to the highest since March 10 $33,49 per barrel, rising to $1,53
The oil reserves in the U.S. for the week ended may 15 fell by 5 million barrels, said the energy Ministry of the country. Thus, the reserves in the country decreased at the end of the second week in a row. Analysts S&P Global Platts, in turn, expected increase in oil reserves by 2.4 million barrels.
Reserves of gasoline in the United States rose last week by 2.8 million barrels, distillates – by 3.8 million barrels. Reserves of oil at the terminal in Cushing fell by 5.6 million barrels.
“The decline in oil stocks was unexpected, but it can be explained by the decrease in export and production against the background of growth of oil refining, said MarketWatch analyst IHS Markit Marshall Steves. – Storages are not filled as quickly as expected, while a sharper decline helps to restore balance on the physical market.”
FXTM analyst Lukman Otonoha, in turn, notes that in the short term, prices may continue to rise as the weakening of quarantine measures imposed at the outbreak of the coronavirus.
“However, growth may be interrupted because of fears the prospects of the world economy and new tensions between the US and China,” he added.