The growth of oil reserves in the US last week exceeded the expectations of experts, in consequence of that the price for "black gold" is reducing. This morning futures for Brent crude oil declined in price by $0.14 to $48.57 per barrel. The same was happened with the WTI - futures fell $0.26 to $46.03.
The American Petroleum Institute (API) reported that US oil reserves increased by 7.1 million last week. This is almost two times more than expected (3.9 million barrels). Today in the afternoon it is expected the official report on oil reserves from the Ministry of Energy. Phillip Futures commented this situation by the fact that soon there will be maintenance work at refineries, causing volumes of oil processing are reducing and oil reserves on the contrary are increasing. The Agency recommends to pay attention on the following trend: "Oil production in the US will likely plan to decline further. After the decline this week, oil production will likely to fail below than 9 million barrels per day". BMI Research in its recent report said that China plans to increase its oil imports in next five years by about 3.2% per year. Company experts wrote in their report that, according to their forecasts China in the nearest five years will increase oil imports from 6.6 million barrels per day this year to 7.7 million in 2020. This strategy is caused by the result of increased refining and restocking in storehouses.
Preliminary official data show us that oil consumption in China fell by 0.1% in September, against the background of the results of last year to 10.13 million barrels per day. Also today, it is scheduled technical meeting of the OPEC and states that are not part of the cartel. Most analysts, as well as some of the participants do not expect an agreement on reduction of oil production.