Tuesday, December 23, 2014

The price of oil goes up in New York – The Point

The price of oil goes up in New York – The Point

Oil prices rebounded Tuesday in New York, in a rather uncertain market which benefited from good figures on gross domestic product (GDP) for the US move in the green. The price of a barrel of “light sweet crude” (WTI) for February delivery took $ 1.86 on the New York Mercantile Exchange (Nymex) to $ 57.12 dollars. The price of Brent North Sea for February delivery ended at 61.69 dollars on the Intercontinental Exchange (ICE) in London, up $ 1.58 compared to Monday’s close.

For several sessions, the price of a barrel of crude in New York connects days of sharp increases. On Tuesday, a day after a sharp decline, he continued this uncertain evolution, straightening after a frank upward revision of US GDP for the third quarter, reflecting a growth of 5%. “The US GDP has certainly brought some support to the market”, leaving hope for an increase in demand, found John Kilduff of Again Capital, but “the increase is mainly due to investors who are betting on a technical rebound, while prices have already fallen in recent weeks. ”

“Not relevant” to reduce supply, according to the Saudi Minister

“After the good figures on the economy, and because of investors are betting on a rebound in the short term courses, there could be an increase over the $ 60, probably not today, but in the longer term, “also commented Bob Yawger, Mizuho Securities.

The fall of a barrel of crude, which has lost nearly half of its value since mid-June, has increased in November after the decision of the Organization of Petroleum Exporting Countries (OPEC) not not reduce its production ceiling at the last meeting of the cartel.

“It is not in the interest of producers of OPEC to cut production, whatever the price (.. ..) What it drops to 20, 40, 50 or 60 dollars, it is not relevant “to reduce supply, further said Ali al-Nuaimi, the Saudi oil minister, in an interview with the journal Middle East Economic Survey (MEES) on Monday.

Troubles in Libya

These statements been added to almost daily now about to do so by officials OPEC, however, have not affected the way, also supported by an announcement of Libya on the decline in black gold supply because of fighting in the producing regions. Libya plans to recover its production to 1 million barrels per day in 2014, which concerned the operators while the global black gold supply is superabundant.

According to Christopher Dembik, at Saxo Bank analyst, this announcement least played for the stabilization of oil prices that low trading volumes on the eve of the holiday season. “The announcement from Libya in the final few played on courses and she does not, moreover, match for about Saudi militant for a low price of a barrel. We are in a lull of the market, there is no significant movement to expect over the next 10 or even 15 days, “he said.

A sign that the market remains under pressure from oversupply, the US group Continental Resources announced a further reduction of its investments, less close to their half, and reduced its production forecasts.

The market is now waiting for the release of the weekly crude oil inventories in the United States by the Department of Energy, scheduled for Wednesday morning. Last week, they dropped less than expected.

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