Thursday, May 26, 2016

Oil prices back to 50 dollars per barrel – ElTiempo.com

The barrel of WTI (US) exceeded for the first time since October 12, 2015 the symbolic bar for $ 50, in the wake of Brent, he left behind that threshold at the beginning of Asian trade.

Around 11:50 am, London time, a barrel of WTI for July delivery gained 50 cents to $ 50.06 on the close of the previous day. The price of a barrel of Brent for July also rose meanwhile 61 cents, to $ 50.35.

The $ 50 was passed the day after the announcement of a clear decrease of American stocks, allowing expect a balanced market.

in fact, US crude oil stockpiles fell more than four million barrels last week, data released by the US Department of Energy . Crude prices had not returned to being above the 50 dollars from the past and had even dropped to $ 26.27 in February.

Behind the rise to this level, which several heavy oil projects are again profitable, have been large fires in Canada and attacks on oil installations in Nigeria.

Global production has fallen around 4 million barrels per day as a result fire in the Canadian region of Alberta and sabotage in Nigeria, plus instability in Libya and cuts in Venezuela.

that lowers momentarily relieves the oversupply that has stifled the market for more than year and a half ago, and helps to rebalance both the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) already see the medium term.

Quote would be corrected

” we are already seeing the effects of underinvestment in global production. In countries such as Brazil and China are declining withdrawals. In many regions of the United States, the underlying production is falling or growth is slowing, “

he told Efe Richard Mallinson, an analyst at Energy Aspects. The expert noted that when interrupts are solved specific supply a “correction in prices” could occur, but argues that “the main trend is towards further increases as the gap between production and demand will narrow.”

wITH AFP Y EFE

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