Oil prices on Tuesday, Oct. 12, declined, despite the weakening dollar. Market participants act out projections of oil reserves in the U.S. and the approximation of OPEC meeting. According to the market, at a meeting on Thursday, the ministers of the Organization will maintain production quotas unchanged. In addition, analysts believe that last week in the United States oil reserves rose again.
Following the auction on Oct. 12 at the New York Mercantile Exchange futures price for WTI crude oil for November delivery fell 0.54 dollars - up to 81.67 dollars per barrel. At the InterContinental Exchange in London November contract for Brent Crude grade fell by 0.22 dollars to close at around 83.5 dollars per barrel.
As we approach the next OPEC meeting to be held October 14 in Vienna, the minds of investors are more interested in the likely outcome of this meeting. Expected from the preservation of the cartel quota policy in the newly raised concern about high inventories and sluggish demand for oil is not conducive to improving the mood of investors. "Demand for oil is weak, and stocks are high," - said the energy market analyst at Citi Futures Perspective Tim Evans. OPEC signals that leave production quotas unchanged, a fact pessimistic in the sense that it will help keep the excess in the market, analysts say.
Cartel members have made clear that leave oil production quotas at the same level. In particular, reported by the OPEC Secretary General Abdalla el-Badri, who said that the current price level is comfortable for both producers and consumers. "We do not want to rock the boat and do something that could affect the global economy," - he said. In turn, oil minister of Qatar, Abdullah al-Attiyah said he does not expect changes in OPEC quota, because producers and consumers happy with the current level of oil prices. The market "is very well balanced," added the meantime, Saudi Arabia's oil minister Ali al-Naimi.
Meanwhile, in the next, October, review the oil market OPEC raised its forecast for demand for 2010. by 80 thousand barrels per day. - Up to 85.59 million barrels. For comparison, last year the demand for "black gold" has reached 84.46 million barrels. The outlook revision was caused by higher than expected, amid government incentives pace of economic growth in the first half of this year. "Despite some instability and setbacks, the global economic recovery continued to support oil demand," - noted in the review of OPEC. Consumption forecast for 2011. has not changed: according to the expectations of the cartel, it will grow by 1,2% - to 86.64 million barrels.
Not pleased with the participants of the oil market and projections of reserves of "black gold" last week. According to the expectations of analysts, the amount of oil in storage U.S. increased by 1.4 million barrels. - Up to 362.3 million barrels. Data from the Ministry of Energy (US Department of Energy) will come this week one day later, on Thursday, because of Columbus Day, celebrated in the country on Monday.
