Waiting for EIA report, Wednesday oil prices reached the June rating
Official information from the U.S. Energy Information Administration (EIA) will appear at 10:30 a.m. (14:30 GMT). If the data from American Petroleum Institute, distributed earlier, was correct – this week becomes the fifth decline in a row for the U.S. crude stocks.
Brent indicator rose up from $51.78 by 1.8 percent (91 cents) till 9:35 a.m. EDT (13:35 GMT) and than reached a level of $51.96 – the highest price since June 10. U.S. West Texas Intermediate (WTI) crude also had a new highest rating since June 29 – it rose up 2.1 percent (95 cents), and its peak reached $49.77 during the session.
Analysts presume that the future OPEC meeting announced to the next month could be a reason for the speculation on the production cut. Organization of the Petroleum Exporting Countries is willing to cut approximately 700,000 bpd from estimated glut, and many major producers were invited to the meeting, including Russia. At the moment forecasts of the meeting result can make the situation with oil prices even more unstable.
However, analysts also have a skeptical position since the most influential producers of the group, like Iran or Saudi Arabia, now produce and export the ultimate amount of oil. Iraq also maintains high production rates, as well as Libya and Nigeria. But according to the current situation, analysts report oil price rising.