Oil prices fell moderatly today
Oil prices fell on Tuesday, breaking a two-day rally, as some market players took profits on the background of a major risk event approaching (no prizes for those who guess which one).
Volatility may damage the prices of risky assets, which includes oil.
The focus shifted to the oversupply. Nigerian militants and the authorities have agreed to a cease-fire for a period of 30 days. Soon, however, this information has been denied.
In addition, it was reported that oil exports of Saudi Arabia in April decreased by 1.3% to 7.44 million barrels per day compared to March (7.54 million bpd). This is the lowest rate in the last six months. Meanwhile, US companies are increasing shale drilling - by Baker Hughes, the number of drilling in the country increases the third consecutive week. But many analysts and traders who hold positive outlook, are suggesting that the number of drilling rigs are still 80% below the peak reached in late 2014.
Trading is also affected by expectations about the oil inventories in the US data to be released tomorrow. According to forecasts, for the week ending June 17, oil inventories fell by 1.4 million barrels.
The cost of the August futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 49.26 dollars per barrel.
The price of August futures for Brent fell to 49.92 dollars a barrel on the London Stock Exchange ICE Futures Europe.