Oil prices are falling fast

Price floor for oil remains ahead

In brief: Oil prices are falling against the refusal of investors to believe in the black gold in the long period of time. Bears prepare for an attack in the area of $ 65 per barrel.

Prices for oil futures Brent and Light Sweet continues to decline, while the cost of the main contract on the New York Mercantile Exchange (NYMEX) fell below $ 68 per barrel. On the eve of futures on U.S. light crude on the NYMEX closed at 70.21 dollars per barrel.

As of 16:33 Moscow time the price of oil futures transactions were ($ / bbl.): – Light, Sweet Crude Oil (July) – 67.93 (-2.28) in the range of quotations 67,31-69,91; – IPE Brent Crude (July) – 68.95 (-2.22) in the range of quotations 68,24-70,95. Oil on world markets continues to fall in price in unison with other risky assets such as stocks. European stocks today are retreating en masse: at 16:35 Moscow time, the British FTSE 100 index fell by 2,70%, German DAX – on 2,75%, French CAC 40 – at 3.37%. Futures on stock indexes traded in the U.S. also significant disadvantages, foreshadowing a deep drawdown indices at the opening of regular trading. Continuing trend towards a narrowing spread between Brent and quotations Light Sweet. In early May, Brent was trading at $ 5 higher than the Light Sweet, but now the gap in favor of a mixture of North Sea decreased to $ 1. Today at 16:30 EDT (0:30 Moscow time) will be published record American Petroleum Institute (API) on a week’s supply of crude oil and petroleum products in the United States. The day will be followed by a formal report on oil reserves, U.S. Department of Energy. Analysts polled by Thomson Reuters, predicting that commercial stocks of oil for the week ended May 21 decreased slightly – by 100 thousand barrels.

Anrey Torbinski
 2010-05-25 19:44, Commodities.

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