Brent becomes cheaper on Tuesday, the price of WTI fluctuates between growth and decline.
The cost of July futures for Brent crude on the London ICE Futures exchange to 8:05 kV fell $0.18 (0.34 percent) to $52,11 per barrel. Futures rose $0.14 (0.27 percent) to $52,29 at the end of trading on Monday.
Futures price for WTI crude oil for July in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,01 (0,02%) to $49,79 per barrel. Main trading on the NYMEX on Monday was not held due to a holiday in the United States.
Investors ‘ attention switches from OPEC agreement on the underlying oil market factors.
The catalyst for the oil market in the near future will probably become report US Department of energy on oil reserves in the country. This week, the report will be published on Thursday, as Monday is a holiday, writes MarketWatch .
The reduction of oil observed in the United States for seven weeks in a row is a good signal for OPEC States+ reducing production with the purpose of rebalancing of the market, experts say.
The recent decision of the OPEC countries+ on the extension of the term of the agreement on the limitation of production will establish the bottom for oil prices at just above $50 a barrel, experts say RBC Capital Markets.
They adhere to “bullish” forecast for the oil market in the long term. The price of WTI approaching $65 per barrel and above, as the market will become more balanced in the second half of 2017, analysts predict RBC.
Experts at TD Securities believe that the solution to the oil producing States to extend the agreement on the limitation of production will lead to a significant shortage of oil in the current year.
“Now is a good time to bet on rising oil market,” – noted the analysts of TD.