Oil prices are falling on Wednesday morning after a moderate rise the day before, caused by concerns about the supply of fuel on the world market and the weakening dollar.
The price of December futures for Brent on London’s ICE Futures exchange is $92.79 per barrel by 8:08 qoq, which is $0.73 (0.78%) lower than the closing price of the previous session. As a result of trading on Tuesday, these contracts rose by $0.26 (0.3%) to $93.52 per barrel.
The price of futures for WTI oil for December in electronic trading on the New York Mercantile Exchange (NYMEX) is $84.84 per barrel by this time, which is $0.48 (0.56%) lower than the final value of the previous session. A day earlier, the contract rose in price by $0.74 (0.9%) to $85.32 per barrel.
The ICE-calculated index, which shows the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), lost about 1% on the eve, which supported oil quotes.
In addition, the market on Tuesday reacted to statements by Saudi Energy Minister Prince Abdulaziz bin Salman that the lack of strategic reserves of raw materials and free mining capacity could become painful for the market in the coming months.
Meanwhile, the American Petroleum Institute (API) reported Tuesday night that U.S. inventories rose by 4.5 million barrels last week. Experts, on average, expected a more moderate growth, in the region of 200,000 barrels.
Official data from the Energy Information Administration of the US Department of Energy will be released on Wednesday at 17:30 qoq, and analysts polled by Trading Economics predict that the report will indicate an increase in oil inventories by 1.03 million barrels and a decrease in gasoline reserves by 0.8 million barrels.
