Economic news

Oil moves down in view of oversupply projections

Oil prices dropped today, pushed down by potential excess of supply along with growing U.S. inventories, but the possibility of Saudi Arabia’s production fall in the coming month, expected economic expansion and a lower U.S. currency could stop downward movement.

Brent futures lost 4 cents, going down to $62.68 for a barrel compared to the previous end of session. This month’s top level was over $70 per barrel.

U.S. WTI futures declined by 13 cents to $59.06 for a barrel. The maximum of this month was over $65 per barrel.

Saudi Aramco’s oil production next month will make up 100,000 barrels daily, which is less than February’s volumes, while foreign sales will hold lower than 7 mln barrels a day, the country’s energy ministry said.

Oil markets to extent were also propped up by the low dollar together with economic expansion. Some indicators were bearish though, experts said.

U.S. crude inventories increased by 3.9 mln barrels over the week to February 9, totaling at 422.4 mln, according to yesterday’ statement by the American Petroleum Institute.

This was largely the result of surging US crude output C-OUT-T-EIA, which has ran up by 20% in the past year and a half, reaching above 10 mln barrels a day, more than the biggest exporter Saudi Arabia’s and getting close to Russia’s levels.

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