Oil prices fell nearly two percent
Prices of oil futures fell nearly $ 1, has come under pressure due to the strengthening US dollar and expectations of the publication of statistics on the number in the US rig. The decline of oil prices has also been associated with negative dynamics of the global stock market.
Oil prices jumped nearly doubled since January, when it reached the lowest level since the end of 2003, which was mainly due to the unplanned interruptions in oil production in countries such as Canada, Venezuela, Libya and Nigeria. However, as prices have reached a level where drilling activity is profitable for some companies, the number of rigs may begin to grow and the reduction of production volumes in the United States may slow down. Today at 17:00 GMT Baker Hughes oilfield services company reported as changing the number of drilling rigs in the United States for the past week. Recall, according to the results ended June 3 working weeks, the number of drilling rigs in the US increased by 4 points, or 0.9%, to 408 units. In annual terms, a decline of 460 units or 52.9%. Number of oil rigs for the week increased by 9 units to 325 units. It was only the second increase this year. Prior to this, the number of oil rigs was reduced by an average of 10 units per week. Recall that last year the number of plants was reduced by an average of 18 units per week on concerns about oversupply.
Important market participants also switched to the Fed meeting, which will take place on 15 June. It Open Market Committee will decide on interest rates. Raising rates will promote appreciation of the dollar, which will reduce the price of oil. Despite the fact that most analysts do not expect such a move, investors prefer to take profits. Today futures on interest rates Fed indicate that the probability of a rate hike of 2% in June. The chances of an increase in rates are estimated at 23% in July.
WTI for delivery in July fell to $49.53 a barrel. Brent for July fell to $50.87 a barrel.