Amid high turbulence of the currency market today, the price of crude oil has increased by 3.7% or by 1.8 USD per barrel against yesterday’s decline.

On Monday US Department of Energy reported that average daily oil production in the United States in August amounted to 8.7 million barrels, which is by 0.6% higher than in July and much higher that the weekly estimate, which is released every Wednesday. According to the monthly energy data, which is considered very precise, the decline in oil production in the USA has been less than expected.

Yesterday's decline in oil prices was the most significant intraday decline in October.

Today at 23:30 (GMT+3) American Petroleum Institute (API) will issue report on changes to oil reserves in the USA for the last week. Tomorrow at 17:30 US Department of Energy will release weekly report on stocks of oil and oil products in the US stores.

At the beginning of the European trading session spot price of crude oil Brent is at the level of 49.00 per barrel. The price is below psychologically important level of 50.00 USD per barrel.

Commercial oil stocks in the USA exceed the level of 468 million barrels, which is by 5.4%higher than the level a year ago and by 31.5% higher than the average value for the similar dates in the past five years.

Many market participants are skeptical about the agreement to reduce oil production by OPEC countries. This proposal will be discussed at the meeting on November 30. It is possible that the final agreement will be signed.

But even if the agreement is signed, there is no guarantee that OPEC countries will fulfill their obligations.Brent: decline in price.  Fundamental analysis for 01/11/2016

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