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OIL MARKET REVIEW, JULY 31ST AUGUST 6th

Oil market

Oil market. Brent crude oil traded last week in the range of $ 52.93 to $ 50.88 per barrel. The maximum price change exceeded more than 4%. According to the information published by Baker Hughes Company on Friday, the number of drilling rigs in the USA decreased during the last week by one unit, this is to 765.

This decline is already the second one in the last three weeks, which might be the signal that the production growth in the USA could become stable, but so far, as per the report of the United States Department of Energy (DOE), the country`s oil production grew by 20 thousand barrels per day for the past week, to the maximum of 9.43 million barrels per day since July 2015.

Meanwhile, oil production by OPEC countries increased by 210 thousand barrels per day in July, to the maximum of 32.87 million since the beginning of the year, according to the Bloomberg agency released data. As for total US oil reserves, by the end of the week, July the 28th, they reduced by 1.53 million barrels, which is to 481.89 million barrels, while analysts predicted a decline by 2.96 million barrels, the International Energy Agency International Energy Agency, IEA) reported.

According to the EIA, gasoline stocks decreased by 2.52 million barrels to 227.68 million barrels, while a decrease by 0.64 million barrels had been predicted.

In the meantime, bank analysts lowered the oil prices forecast for the third consecutive month, as evidenced by the results of the monthly study of The Wall Street Journal. Fifteen investment banks representatives who participated in the poll, conducted in late July, expect that Brent oil will have an average cost of $ 53 per barrel this year, which is $ 2 lower than the June estimate.

The WTI forecast got $ 1 worse – down to $ 51 per barrel. The Wall Street Journal respondents also predicted a decrease of oil prices in 2018: for Brent oil – to $ 55 per barrel from $ 57 per barrel, for WTI oil – to $ 53 per barrel from $ 55 per barrel.

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