Oil prices today: black gold is going cheaper

Oil prices continue to plummet on commodity markets

In brief: Oil prices remain in the red zone of risk because of the new common problems of the world economy and the market for oil.

Oil prices go into the minus. Quotes of the oil market on Thursday, June 17 on the basis of trades were closed with a decrease in value against the release of negative economic data. On the New York Stock Exchange New York Mercantile Exchange price of July futures for petroleum of mark Light Sweet decreased by 0.88, or 1.1%, and its price was 76.79 dollars per barrel.

At the exchange InterContinental Exchange Futures Europe in London, Brent crude futures price rose 0.54, or 0.35%, to 78.68 dollars per barrel. On Thursday, June 17 quotes on the market of “black gold” closed with a decrease in the price of the following factors: 1 – oil and petroleum products – which lasted for three days of rising oil prices was interrupted due to fears of excessive short-term oil and distillates. According to a report from the Ministry of Energy reserves of crude oil and distillates in the week 5-11 June showed unexpected growth, adding 1.69 million barrels and 1.798 million barrels, respectively; 2 – for technical reasons – many of the indicators on the chart went to the zone of deep overbought, when oil quotes were at around $ 78 a barrel – that led some market participants to close the previously open long positions to take profit. This alignment positions in connection with the expiration of options on the July futures for crude oil increased pressure on prices; 3 – economic data – disappointing U.S. economic data also affected the oil quotations, reinforcing doubts about the pace of economic recovery. Thus, the reported Thursday to the Ministry of Labor, the number of applications for unemployment benefits in the week 6-12 June rose by 12,000, whereas the expected decrease in 6000. And the index of business activity of the Federal Reserve Bank of Philadelphia in June pointed to a slowdown of activity in the manufacturing sector of the country.

From the news it is worth noting the World Bank forecasts that the price of oil in 2010 reached an average of 78 dollars per barrel, and then in 2011 will fall to 74 dollars. This forecast was made in connection with the expectation that OPEC will continue to adapt to increased demand, keeping prices within a specified range of 70-80 dollars per barrel. World oil demand is expected to increase by 2% or 1.7 million barrels per day in 2010, while growth in shipments from countries outside of OPEC, is projected at 0.7 million barrels a day. Most analysts suggest that oil prices came back into the trading range of 70-90 dollars per barrel, which may reassure the market and continue to serve as a starting point for growth. The close relationship between oil prices and the rate of U.S. dollar, as well as data on stocks of petroleum and petroleum products is expected to continue to set the tone for trading on the oil market. Many analysts expect “extremely difficult environment for trade in the future, prices will fluctuate within the area of 70-90 dollars per barrel for a long time in coming months in response to the intraday changes in the stock and currency markets, and the situation in the euro zone, possibly will have a secondary effect.

Anrey Torbinski
2010-06-18 10:09, Commodities.

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2 comments к “Oil prices today: black gold is going cheaper”

  1. Sengupta Says:

    What is the crude oil price today?

  2. Guava Says:

    Crude oil prices gain above $77 a barrel as the Standard & Poor’s 500 Index increased to the highest level and the dollar pared its gains against the euro.

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