On Monday, the oil continued its growth, and showing one of the longest rally for last 15 years on distrust of traders who believe that the global oversupply of oil will continue as long as planned. Over the past three sessions has been set a growth at 27%, which was triggered by a number of factors, including downward revision of estimates of production in the United States and statistics, which caused the talk about considering the reduction of oil production by OPEC.

According to the US Energy Information Administration at the beginning of week, extraction of "black gold" this year shows very limited results, against expectations. The total reduction in oil prices dealt a strong blow to US oil production rate, according to federal data. Because of the new unprofitable investments, some companies were not able to carry out their activities and were declared bankrupt. Baker Hughes Inc. agency gives the following statistics: over the last year in the United States number of drilling rigs decreased by 58%, despite the fact that companies opened new rigs in recent months.

At the beginning of oil upward movement recovery of traders and investors in the market was explained by the desire to recoup their losses on unsuccessful sales. Sudden buying of oil in large quantities hurried the "oil" race in the United States on international markets in "bull" direction on Monday, as a result gave a 20% increase from the previous minimum. Such a sharp rise of oil prices was another example of the splash in the volatile financial markets in recent weeks. All losses in August were compensated in a few days, heavy oil shows an increase by 4.4% for month. According to experts, the price per barrel should not grow during a longer period, it should compel the United States and other countries to reduce oil production. OPEC says about the absence of agreement on the future dialogue with other manufacturers, as long as it is not clear what exactly price oil producers are going to set. Last week the Iranian oil minister said that the price agreed upon and it is $80 per barrel, the minister's words confirmed Iraq and Venezuela.

Source: www.wsj.com