Wednesday, 20 July 2016 12:58

Oil prices continue falling

In Tuesday's trading session, oil prices fell for the second consecutive session by US dollar rose despite new figures showed that oil stockpiles fell slightly, according to Reuters updated.

American Petroleum Institute (API) published US crude stocks fell 2.3 million barrels last week, higher than a decline of 2.1 million barrels as a forecast of experts. Today, the US Energy Information Administration (EIA) will provide data on the official oil reserves. Earlier, US gasoline supplies fell for 8 consecutive weeks.

Typically, such information will help the oil price increase, but yesterday, the market's attention again focused on fuel supplies in the US have risen too high in the summer.

In recent weeks, when storage places have run out of fuel on the bank, the US energy companies stored excess products in ships near the coast. Many analysts point out, even if crude stocks fall, increased fuel output still makes the market very nervous.

On the London market, Brent delivery August fell 30 cents or 0.6% to $46.66/barrel. In New York, light sweet crude WTI fell 59 cents or1.3% to $44.65/barrel, WTI oil price in the previous trading day lost 1.6%.

The difference between the Brent price and WTI oil price was the highest level since late April 2016.

Yesterday, US dollar suddenly rose to the 4-month high against many major currencies of the world, increasing Dollar generally has a negative impact on oil prices.

In Libya, a pretty big strike of workers in energy sector erupted in the port area to the east of Libya, according to initial estimates, the strike caused the Libyan oil exports falling 100 thousand barrels/day.

The published new data showed that India, a country consumes a lot of energy products, had strong oil imports in June so that Iraq and Saudi Arabia exported more oil. June exports of these two countries are much higher than in 2 previous months . Currently, Iraq is providing more than 20% of oil imported into India.

Many experts predict in the near future India will continue to buy more energy products because the government is aiming to build three storage places of energy products. India's import will increase an estimated 91 million barrels of oil from now until 2020.

Xuan Nguyen

Published in Commodities

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