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Rigs in the US pump money out of Russia

Вышки в США качают деньги из России

The information on the growth in the number of drilling rigs in the US was the reason for the decrease in oil prices. However, according to experts surveyed by “Газетой.Ru” this trend will continue for long and things can change in the middle of the week, when will the data about oil stocks in the United States.

Us oil service company Baker Hughes last Friday announced that this week the number of drilling rigs in the US increased by six to 933 units. The number of oil rigs had reached a 747 units, and gas — 186.

The fall in oil prices due to the glut in the market, due to the fact that the growth in US production compensates the efforts of OPEC to reduce the production of black gold.

“I would say that the current picture is more connected with the drift of the open positions of speculators in the NYMEX and ICE,

than whatever suspicions and assumptions about so “much worsened” the oil market just a week,” says senior analyst of the company “Horizon” Vladimir rozhankovsky.

On the Intercontinental exchange ICE in London, Brent crude for September delivery traded at $47,2.

BCS analyst Ivan Kopeikin believes that the overall situation can not affect the market. “There are symbolic figures of 0.1–0.2%. Further dynamics will affect the Russian market. Data on stocks, which will be released on Wednesday, will be the center of attention for oil prices. Significant growth, as it was in the beginning of the year, will no longer be only a reduction, and, of course, this situation will have a positive impact on the cost of oil,” — says the source “Газеты.Ru”.

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However, according to senior market analyst AxiTrader Greg McKenna, the number of oil rigs in the US increased 22 consecutive weeks. This trend strategist calls record. He also added that the growth rate of the number of units is reduced.

Recall that at the end of may, OPEC decided to extend the agreement to limit oil production to March 2018, as reported by the Minister of oil of Kuwait Issam al-marzouq on results of negotiations of the countries of the cartel in Vienna.

Earlier, the head of the Russian Finance Minister Anton Siluanov on the same occasion said that the implementation of the November agreement has led to the fact that the producers were “collective win”, as due to the increase in world prices in all countries increased revenues.

According to the Minister, the extension of the agreement aimed at stabilizing prices and will favorably affect the balance of payments of oil-producing States. “The Finance Ministry expects to use the favorable price situation to replenish the reserves to be prepared for any future scenarios in the case of volatility of oil prices,” — said Siluanov.

The revenues of OPEC countries from oil exports last year declined by 13.2% to $445,68 billion, despite the fact that the physical volume of foreign supplies of the countries of the cartel increased by 6.5% to 25,014 million barrels. a day. This is stated in the report of OPEC for the year 2016, released last week.

“The decline in revenue was expected, because in 2015 the average price of a barrel of Brent crude was at $52,4, and in 2016 — $44,1,” — says the analyst of Raiffeisenbank Andrey Polischuk.

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According to the cartel, last year the average daily global oil production was $ 75,476 million barrels., which is 0.5% higher than the previous year. World production growing for the seventh consecutive year, indicates OPEC.

The biggest producers last year were Saudi Arabia (of 10.46 million barrels./day, +2.6 percent), Russia (10,29 million barrels,+1.8%) and USA (8.87 million barrel. -5,7%).

As stated earlier the Russian Minister of energy Alexander Novak, Russia will adjust the forecasts for production in 2017 4 million tons, to 547 million tonnes. This will carry out production cuts proportionally. The Ministry’s forecast for prices for the current year remains at $50-60 per barrel.

Recall that in late September last year, OPEC agreed to limit production at the level of 32.5–33 million barrels. a day. In August, the cartel produced 33,174 million barrels., and in September — 33,394 million barrels. a day.

The demand for oil, according to OPEC estimates, in 2016, was of 95.12 million barrels. a day, which is 1.5% more than in 2015. Demand grew mostly at the expense of the Asia-Pacific region (primarily China and India). But in Latin America, demand is declining for the second consecutive year.

But the production in 75,47 million barrels./day and demand of 95.12 million barrels. last year the oil market was supposed to be a clear deficit.

While different countries (including Russia) has repeatedly made statements about the prevalence of supply over demand that has put pressure on global prices. The figures given vary, but most was said about the excess supply in the amount of 1-1,5 million barrels. a day.

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