Oil prices dropped significantly today amid reports of a weakening of forest fires in Canada, as well as data reporting the increase in oil inventories in Cushing terminal.
Experts point out that the damage caused by fire to oil facilities is limited, and if some of the objects and closed, for the evacuation of personnel. Light rain and reduced air temperatures in Alberta have also limited the spread of fire.
Pressure on the quotes also provides that the number of long speculative positions in WTI crude oil remains at its highest level since the summer of last year, and the number of similar items for Brent crude oil rose to near record levels. Oil prices rose by more than 70 per cent after reaching 12-year lows around $ 27 or less in the first quarter, supported by the fall in US production, unexpected supply constraints from Libya, North and South America, as well as a weaker dollar.
In addition, the firm Genscape reported today that oil inventories in Cushing terminal rose by 1.4 mln. Barrels. Recall, according to the US Department of Energy, US crude oil inventories rose last week by 2.8 million barrels to a record high of 543.4 million. Barrels.
Investors also continued to analyze Friday's report from the oilfield services company Baker Hughes, which showed that the number of active drilling rigs for oil production in the US dropped from 30 April to 6 May to 328 units from 332 units, which is almost 80% less than the record high recorded in October 2014 (1609 units). The last reading was also the lowest since the end of October 2009. The number of gas production plants was reduced to 86 units from 87 units. Meanwhile, the total number of drilling rigs (oil and gas) fell by 5 units to 415 units, while writing the 19th consecutive weekly decline and reached a 41-year low.
In focus were also news that the post of oil minister of Saudi Arabia, instead of Ali al-Naimi was appointed Khalid al-Falih. Today, the new minister said that Saudi Arabia intends to continue the current policy in the oil sector. "Saudi Arabia will remain with its established policy in the oil sector. We remain committed to maintaining our role on the international energy markets and strengthen our position as the most reliable supplier of energy in the world "- said al-Faleh.
WTI for delivery in June fell to $43.62 a barrel. Brent for June fell to $43.92 a barrel.