Prices for oil decelerated today, due to the anticipation of inability to keep growing at a high pace in the remaining three months of the year like it was happening through the third quarter.
U.S. WTI crude dropped to $50.16 for a barrel this morning, which is 26 cents or 0.5% loss. Brent crude went down 22 cents or 0.4%, reaching $55.78 per barrel.
Fundamentals may not be as solid as should be to prop up a lasting ascend, particularly oil, a growth-dependent commodity, said Denmark’s Saxo Bank’s Ole Hansen in a periodic note to investors. Traders believe that rebalancing of the market is in due course, that is to say demand no more falls short of supply.
Robust consumption and measures taken by the OPEC and other non-OPEC oil producing countries to decrease output by as much as 1.8 mln barrels a day this year and in the first three months of the next year consequently lead to rebalancing.
Implementation of the OPEC decision to cut back production exceeded 100% in August, i.e. on average member states production was less than their quotas, and oil inventories in the U.S. have been shrinking lately, said William O‘Loughlin of Australia’s Rivkin Securities.