Oil prices decline after strong growth the day before

Oil prices decline after strong growth the day before

Oil prices decline after strong growth the day before

Prices for benchmark crude oil declined on Wednesday, demonstrating strong growth following the results of two previous trading sessions. Support for the market on Tuesday was provided by the news of the approaching the US coast in the Gulf of Mexico hurricane Delta, which has increased to the fourth category on the Saffir-Simpson scale, according to the National Hurricane Watch Center. The hurricane is forecast to reach the US South on Thursday or Friday morning.

As of Tuesday, 29.2% of oil production capacity in the Gulf of Mexico had been shut down, according to the Bureau of Environmental and Safety Affairs of the US Department of the Interior.

Concerns over the proposal are also raised by a workers' strike in Norway, in which Equinor previously suspended production at four fields in the North Sea.

Investors continue to monitor the fate of the new package of measures to support the US economy. On Tuesday, President Donald Trump announced the suspension of negotiations on a new stimulus package until the presidential elections.

In addition, traders on Wednesday await the publication of data from the US Department of Energy on the reserves of oil, gasoline and distillates in the country.

The American Petroleum Institute (API) said on Tuesday that US oil inventories rose by 951,000 barrels in the week ended October 2. According to API, stocks of gasoline decreased by 867 thousand barrels, distillates – by 1.03 million barrels. Oil reserves at the Cushing terminal increased by 749 thousand barrels.

Analysts polled by S&P Global Platts, in turn, expect that the US Department of Energy data will show a decline in oil reserves last week by 2 million barrels. According to their estimates, stocks of gasoline fell by 800 thousand barrels, distillates – by 2.9 million barrels.

The US Department of Energy will publish a weekly report on energy reserves in the country on Wednesday at 17:30 Moscow time.

The cost of December futures for Brent oil on the London ICE Futures exchange by 8:27 Moscow time on Wednesday is $ 42.02 per barrel, which is $ 0.63 (1.48%) below the price at the close of the previous session. As a result of trading on Tuesday, these contracts rose by $ 1.36 (3.3%), to $ 42.65 per barrel, after jumping 5.1% the day before.

The price of futures for WTI crude oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) by this time is $ 39.94 per barrel, which is $ 0.73 (1.79%) below the level of the previous session. On Tuesday, futures rose in price by $ 1.45 (3.7%) – to $ 40.67 per barrel. A day earlier, their growth was 5.9%.

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