The price of oil has increased significantly, entrenched above $ 61 (Brent) and $ 53 (WTI) amid signs that spending cuts in the mining sector may limit the excessive supply. As it became known, the US oil and gas company Apache Corp announced its intention to reduce the number of drilling rigs by 70%. In turn, the French company Total announced plans spending cuts and volumes of exploration. Due to this, the company expects to save in 2015 to $ 4 billion. Total is going to cut two thousand. Jobs by 2017 and sell assets worth $ 5.5 billion. Investments also cut General Electric, Lariat Services, Trican Well Service and Royal Dutch Shell. This leads to reduced production.
Also, market participants are waiting for the publication of today's data on the number of drilling rigs Baker Hughes (at 18:00 GMT). WTI crude oil may continue to rally above the high of the week when the report will reflect a reduction plants in the United States. Recall last week Baker Hughes, reported that the number of oil rigs in the United States decreased by 83 to 1140 units.
Support was also provided data on the GDP of the eurozone. As previously reported, the eurozone economy expanded in the fourth quarter by 0.3 percent - faster than the 0.2 percent growth in the third quarter. According to forecasts, growth rates were to remain at 0.2 percent. In annual terms, GDP grew by 0.9 percent after expanding 0.8 percent in the third quarter. Economists had forecast a GDP growth of 0.8 percent over the fourth quarter. For the entire 2014, GDP grew by 0.9 percent.
It is worth emphasizing the week the price of oil has increased by about 4 percent. "In recent weeks, oil prices recovered due to improved market sentiment and expectations that low prices lead to lower supply growth in 2015," - said Daniela Corsini from Intesa Sanpaolo.
Meanwhile, experts Capital Economics said that the recovery of the price of Brent crude oil during the first two weeks of February gives hope for their further growth to $ 70 per barrel. In its review, the experts suggest that the current recovery in oil prices is due to a sharp drop in the number of drilling rigs, as well as reports of large oil companies to reduce the investment.
March futures price for US light crude oil WTI (Light Sweet Crude Oil) rose to 52.94 dollars per barrel on the New York Mercantile Exchange.
March futures price for North Sea petroleum mix of Brent rose $ 4.36 to $ 61.42 a barrel on the London Stock Exchange ICE Futures Europe.