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Data on gasoline stocks in the United States dropped the price of oil

As of 11:30 morning trading 6 May on the Moscow Exchange the cost of June futures for Brent crude oil decreases by 0,27 % to the closing level of the previous trading session to the mark 68,77 dollars per barrel.

Data on gasoline stocks in the United States dropped the price of oil

During the bidding 5 May oil prices fell by 1,35% – with the level 69,49 to the mark 68,55 dollars per barrel. The negative factor was the data of the US Department of Energy, which showed an increase in gasoline stocks by 737 thousand barrels, against the forecast of a decline by 652 thousands. Despite the start of the car season, fuel consumption is at a modest pace. However, there was a decrease in the reserves of black gold by 7,99 million barrels of, against the consensus forecast of a decrease by 2,346 million. This was facilitated by an increase in oil refining volumes and an increase in export supplies..

Against this background, the cost of raw materials came close to the level 70 dollars per barrel, however, the mark could not be crossed, and prices fell back to the value 68,4. Additional pressure on the quotes of raw materials was exerted by reports of a decrease in the selling prices for oil from Saudi Arabia for European and Asian countries.. The discount ranged from 0,1 to 0,5 dollars for a barrel of black gold, which indicates a slowdown in demand for hydrocarbons.

Also, the epidemiological situation in India continues to be a negative factor., where a new daily anti-record for the number of cases of COVID-19 has been set - 418 thousand infected. The country's authorities have so far refrained from introducing a national lockdown, however, production activity in the country is declining, which negatively affects global energy consumption.

Besides, OPEC countries have increased oil production by 350 thousand barrels per day. Further increase in the value of black gold is becoming more difficult, since market participants have already incorporated positive factors into current prices, vaccination-related, the abolition of antiquated restrictions and the resumption of air traffic between countries. Against this background, any negative news for the commodity market could be a signal for the beginning of the correction of commodity quotes.. The upside potential is capped at 71,36 dollars per barrel, where the maximum was noted in March of this year, mark experts of the financial analytics department of FBA "Economics Today" *.

*This forecast is the opinion of the editorial board., and does not serve as a recommendation for performing transactions in the financial markets.

Alexander Bagmanov

A source