Oil prices fell moderately, retreating from the highest point of the year. Pressure on the quotes provide evidence of increasing oil production in the Middle East.
Bloomberg reported that in April, oil production by OPEC countries as compared to March increased by 484 thousand. Barrels and reached 33.217 million barrels a day, which is the highest since 1989. Meanwhile, a poll conducted by Reuters, shows that oil production in April rose to 32.64 million barrels a day to 32.47 million barrels in March, slightly lower than in January, when the highest rate of production was recorded (32 65 million barrels) in 1997. Both agencies indicate growth occurred at the expense of Iran, which is rapidly increasing its production volumes after the lifting of sanctions. According to Bloomberg, Iran already produces 3.5 million barrels, which is the largest level since December 2011, but according to Reuters, this figure reached 3.4 million barrels.
Analysts say that rising volumes from the OPEC production outweigh the reduction in raw material extraction level in the US, as well as the depreciation of the US dollar. Noting the past three months, oil prices have risen by 70 per cent.
Investors also continue to analyze the data Friday from Baker Hughes, which showed that the number of drilling rigs in the US fell last week by 11 to 332, its lowest level in six years. At the same time it has been used 679 rigs last year. This week the focus will be data on oil reserves in the United States - on Tuesday they will release the American Petroleum Institute, and on Wednesday, official data release Ministry of Energy.
In the course of trading is also affected by the latest report from the Commodity Futures Trading Commission, which showed that for the week April 26th volume of net speculative long position in futures for WTI peaked with last May, and the volume of gross shorts down to ten months lows. "Market participants are focused not on the current excess supply, and on the balancing market predictions in the 2nd half of the year", - the expert said Societe Generale Mike Whitner.
WTI for delivery in June fell to $45.36 a barrel. Brent for June fell to $46.37 a barrel.