Oil is cheaper on Friday and for the week
Oil prices decline on Friday and finish the week in negative territory for the first time since December, investors are waiting for evidence of a reduction in OPEC production.
The cost of the March futures for Brent crude on the London ICE Futures exchange to 13:49 kV was down 96 cents to $55,47 per barrel.
Futures price for WTI crude oil for February at the auction of the new York Mercantile exchange (NYMEX) decreased by that time for $0,56 (1,06%) – to $52,45 per barrel.
Since the beginning of the week Brent fell by 2.8% as WTI.
Most experts do not expect any significant changes in WTI next week – 15 of 39 analysts polled by Bloomberg predict that the week will be for the oil market is calm. One of the respondents puts at lower prices, and 28% (11) predict a rise in the cost of fuel.
Previously, many countries participating in the collective agreement on production cuts, announced the implementation of the agreements . In particular, Saudi Arabia, at the request of the energy Minister, has lowered the production even more and produces less than 10 million barrels per day.
However, according to analysts Commerzbank, before the release of monthly data on the production of these statements cannot be verified.
Monitoring of production was established, the special Committee, consisting of representatives of OPEC and other States. His first meeting will be held on January 21-22 in Vienna. Russia is ready to discuss the proposal of Kuwait on monitoring not only the reduction of oil production and exports, told reporters Minister of energy of Russia Alexander Novak.
Meanwhile, a positive factor for the oil market became evidence that China increased in December oil imports to a record high of 8.56 million barrels per day. The pace of supply growth for the year was a record for the last 6 years and amounted to 13%.
In 2017 the rise of imports is expected to continue and may reach 5%.