Recent statistics on the main benchmark grade of oil from the USA showed the total number of produced oil can be reduced in the United States, while demand is increasing rapidly. This news led to a confident price growth on "black gold" in the last week.


European company Brent raised their positions by 3.5% to 65,00, WTI by 2.2% to 59.90. The difference in cost between grade of oil has reached $5.1. Now there are ascending moods dominate among the prices for different brands of oil. This is due primarily to the fact that one of the largest oil service company Baker Hughes the newly released data on the reduction of number of working rigs. Despite the growth of their quantity a week earlier, and forecasts of the investors that those with high levels of production cost of oil production, have left the market, the decrease in drilling continued. Also falling of trading stocks for 6 million barrels in storehouses under the ground demonstrates that analysts underestimated the seasonal demand.


This week, market participants are full of expectations on the strengthening of the movement, and if they are right, the movement of quotes may reach the upper limit of the resistance, which was formed last two months, and amounted to $60-70 per barrel. In case of a major rereducing inventories, contracts will be able to overcome the level of 70.

Source: www.reuters.com