Oil prices fall on Wednesday after a sharp jump in the previous trading, the market is waiting for new signals, which would allow to assess the probability of oil-producing countries of the agreement on production cuts at a conference in Vienna on 30 November.
The price of January futures for Brent crude on London’s ICE Futures exchange at 12:27 kV dropped to $0,27 (0,58%) – to $46,68 per barrel.
The futures price for WTI crude oil for December in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,33 (0.72 percent) to $for 45.48 per barrel.
The Minister of energy of Saudi Arabia Khalid al-falih plans on Friday to hold in Doha meeting with his Russian counterpart Alexander Novak, told The Wall Street Journal, citing its sources.
The OPEC Secretary General Mohammed Barkindo planning a trip to Venezuela, Ecuador and Iran in the coming days .
Recent developments on the market associated with the sharp drop in raw material prices and increased pressure on OPEC countries, market participants now come from the increased likelihood of concluding at the end of November agreement to reduce production.
Meanwhile, according to the American Petroleum Institute, the oil reserves in the USA last week increased by 3.6 million barrels. The increase was more than two times higher than expected.
On Wednesday, the US Department of energy will publish the official data on the level of fuel stocks in the United States.
The international energy Agency (IEA), released on Wednesday a long-term forecast for the oil market, expects continued growth in oil demand at least until 2040, even with full implementation of the Paris agreement to combat climate warming.
“The agreement will accelerate the deployment of clean technologies, however, will not prevent the increase in oil consumption, at least until 2040,” – noted in the review of IEA, published on Wednesday.
“Peak demand growth is not visible yet, – said the head of the IEA, Fatih Birol. – Demand will grow slower than before, but the increase will continue.”
F. Birol noted that oil consumption will grow, despite increased investment in renewable sources of energy as alternatives to fossil fuels is not enough.
The demand for oil could reach a peak by 2020 in the case of adoption of more stringent approach to solving the problem of climate change, noted in the IEA.
In accordance with the IEA, global oil demand in 2040 will increase by almost 12% compared to the level of 2015 – up to 103.5 million barrels per day.
Oil consumption in OECD countries will probably decline, but this decrease will be offset by increased demand in other States, noted in the IEA.
India will be a key source of growth in oil demand, while China will surpass the US as the largest consumer of oil in the early 2030’s, predicts the IEA.