2016-11-24 10:36:06

It is Thanksgiving Day in the USA today and tomorrow there will be a short trading day instead of Friday; that is why oilfield services company Baker Hughes issued report on the number of active drilling rigs in the United States today. It became known that the number of active rig has grown again last week up to 474 units. The number of active rigs in the USA has been increasing for the third consecutive month. Note, that it is an important indicator having a negative impact on the oil prices.

Traders ignored yesterday's data released by the US Department of Energy on the reduction of the commercial stocks of oil in the USA by 1.255 million barrels on the week of 12-18 November. Yesterday, futures for crude oil Brent fell by 0.3% to 48.95 per barrel. Spot price of crude oil Brent also declined slightly at the beginning of today's European session. Now, it is at the level of 49.00 per barrel.

Recent statements by the representatives of Iran and Iraq led to the rise in oil prices to $50 per barrel. Minister of oil of Iraq Jabbar al-Luaibi has said that Iraq is ready to cooperate with OPEC and cut production. Many analysts believe that if Iran and Iraq join the OPEC agreement to reduce oil production, it may cause shortage of oil supply in the oil market.

Market participants are waiting for the outcome of OPEC meeting on 30 November to see if the agreement to cut oil production will be reached or not.

Because despite the statement made by the Minister of Oil of Iraq there are some doubts that such agreement can be achieved or implemented.

Many market participants are skeptical about the agreement of OPEC to reduce oil production. But even if the agreement is signed, there is no guarantee that OPEC members will fulfill their obligations.

The rise in the USD prevents growth in oil prices. The minutes of the FOMC meeting in November, which were released on Wednesday, showed that the regulator almost did not change monetary policy plans. According to futures for the Fed rate, probability of the monetary policy tightening in December is 94%.

Oil prices remain under pressure, despite recent rise to the levels of 50.00 due to the rise in the USD and existing excess of oil supply in the world.Brent: reduction of oil inventories in the USD amid the rise in the USD.  Fundamental analysis for 24/11/2016