On Thursday, Brent oil dropped 1.1% to $51.95/bbl at ICE Futures Europe. Oil prices have been falling since the opening of trades on Friday against a backdrop of the USD's general consolidation in the currency market. However, the quotes remain close to 10-month lows amid continuing supply outages and a decrease in US oil stocks. The United States Department of Energy announced on Wednesday that the commercial oil reserves had dropped by 3.226 million barrels the previous week, which points at a steady demand for oil ahead of the summer holidays.
Nigerian rebels expressed their readiness to fully destroy oil production in the country. Numerous attacks on key pipelines and infrastructural objects had cut production to about 1 million barrel a day in Nigeria. The recent fires in the Canadian province of Alberta badly affected oil export from Canada as many oil producing companies had suspended production in dangerous regions.
The cut in the US oil production and export outages in some regions continue to support oil prices. The price has broken an important resistance level at 50.70.
The current impetus, pushing oil prices upwards, along with the weakening of the US dollar and the absence of any counter factors may contribute to a further price growth.
Once the correction is completed, oil prices may continue growing in the current circumstances despite the current glut on the market. A breakout of the recent highs at 52.80 (Brent, $/bbl) will indicate a further growth.