Cost of oil decrease, correcting from abrupt growth upon the results of previous trading session
Up to the present day, the cost grew for 8 sessions straight, which did not happen since mid of 2017. From 18-month minimum established in the end of December, Oil Brent went up for 20%.
The costs correctionally decrease by January 10. The cost of futures for Brent by 10.44 January 10 decreases for 1% till 60, 76 $ USD for barrel. Short-time cost growth on 9.01 is related to sufficient oil extraction agreed at OPEC+.
Energy Minister of Saudi Arabia pointed out that the agreements reached during summit OPEC+ on reduction of oil extraction for 1, 2 million barrels for 24 hours period permit to return the market back into balanced condition.
Oil export from Saudi Arabia itself as said by the Minister in January comprised 7,2 million of barrels for 24 hours period, by the beginning of February, this number decreased till 7,1 million of barrels for 24 hours period.
Optimism on the market is also caused by the negotiations between the USA and China, which ended 09.01.2018. The parties discussed the increase of agricultural goods, energy carriers and industrial goods purchase by China from the USA.
Basing on experts estimates, the agreement must be signed until February 9, 2019, which gives support to China’s economy and result in oil demand growth.