Oil quotes are going down after three-week highs renewals, market participants are fixing the profits. Prices for Brent December contracts have decreased by 1.29% and are now trading at $57.40 a barrel. WTI November contracts have become by 1.25% cheaper, their price is now $51.39 a barrel. During four trading days oil was growing and the prices went up by about 3%. The experts relate the downtrend to the fact that investors are fixing the profits, which have been made during that time.
Less than 200 thousand of oil barrels arrived at Turkish port, which is 400 thousand barrels per day less than usual supply volume. The reason for this is that the oil pipeline is still controlled by Iraq Kurdistan, despite that Iraq forces occupied the region.
Oil prices was also affected by the data, released by the U.S. Department of Energy within the weekly report. The oil stock reduction turned out to be less significant than American Petroleum Institute suggested. According to the forecast, the reserve was expected to decrease by 7.1 million of barrels, but it reduced by 5.73 million of barrels. The country’s production also reduced as a result of Hurricane Nate. Extraction level fell down to 2014 low.
However, the market was supported by OPEC Secretary General, Mohammed Sanusi Barkindo’s speech. He noted that the union’s actions within the agreement reduced oil supply surplus by half.