Speculators increasing their short positions in Brent
After rising by more than 50% in the period from February to March, the oil is rapidly becoming cheaper. June futures for Brent crude oil approaching the lows of early March. By 14.30 Moscow time the oil barrel of Brent crude cost $ 37.56 and WTI crude oil traded at $ 35.62 a barrel.
The market participants are skeptical about the forthcoming meeting in the Qatari capital on 17 April. Recall that at the end of last week, Saudi Arabia said that the freeze production levels only in the event that Iran will go to similar measures. Iran, meanwhile, plans to increase production to 4 million barrels a day. This jeopardizes the possibility of concluding any agreement was on 17 April.
«Brent quotes are gone in a lower range of $ 37,50-38,40 per barrel with $ 38,00-42,80 per barrel recorded in March, when market participants expected a positive outcome of the upcoming summit in Doha. According to the Intercontinental Exchange in long speculative positions on the Brent crude oil, the rate of increasing the volume of long positions has slowed down, and we are seeing a slight increase in short positions in Brent », - writes Dmitry Kolomytsyn and Iskander Lutsk, analysts Sberbank CIB.
"Against the rising oil prices play a potential to increase the supply of oil on the market, - says Denis Asainov, Criminal Analyst« Alpha Capital ". - It can contribute to the return of Iran and Libya on the market, as well as the adaptation of the American mining companies to the new realities of the market by reducing the cost. In addition, companies are able to quickly increase production through the development of drilled but not designed well. "
According to Bloomberg, Libya, refused to participate in the April summit, in March increased the export of oil to its highest level in three months.
Today, the market is also waiting for the release of data on stocks of raw materials in US stores by the American Petroleum Institute. Analysts expect to see the eighth consecutive week of growth.
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