Last week oil prices declined after the election of Donald Trump as the US President and in anticipation of the OPEC meeting scheduled for November 30.
OPEC attempts to overcome problems and reach an agreement on oil production cuts have not been yet successful. Market participants are skeptical about this agreement. It is unlikely that OPEC will agree to reduce oil production to 32.5-33 million barrels per day. Even if the agreement is signed, there is no guarantee that OPEC members will fulfill their obligations.
Concerns about the excess of oil supply are still the main driver of the decline in oil prices.
New US President Donald Trump plans to ease restrictions on the energy production in the country and cancel investment into the United Nations climate changing program. Such steps will support oil production in the United States, which has been growing recently every week.
Last week there were 452 rigs in the USA.
At the beginning of the month, American Energy Information Administration of the Department of Energy raised forecast for oil production in the country.
According to the new forecast, oil production in the United States this year will amount to 8.84 million barrels a day. According to the previous forecast oil production was supposed to reach 8.73 million barrels a day in 2016 and 8.59 million barrels in 2017.
Today, oil prices have slightly corrected after the strong decline since the beginning of the month.
The January futures for crude oil Brent at ICE Futures were traded at 45.1USD per barrel. Spot price of Brent at the beginning of today's European session was at the level of 45.20 USD per barrel.
Economists believe that oil price can continue to decline.
Tomorrow at 00:30 (GMT+3) - American petroleum Institute (API) will issue a report on changes to oil reserves for the last week.
At 18:30 - Changes to the oil and petroleum products inventories in the USA for the last week from the US Department of Energy will become known.
On Friday at 21:00 (GMT+3) - American oilfield services company Baker Hughes will report on the active drilling rigs. This index is an important indicator of activity in the US oil sector. It has a significant impact on the oil prices. Currently, the number of active rigs is 452.