oil prices fell on Monday morning under heavy pressure, and fell as much as since the beginning of February not more. At noon, they have made up for about half of the early losses. The equity markets limited their losses a.
On Sunday talks between Russia and the leading members of the Organisation of Petroleum Exporting Countries (Opec) to cap the flow of crude oil had failed. “The meeting in Doha ended in fiasco”, commented commodity experts at Commerzbank. In Doha should be counteracting the recent decline in oil prices. Now a new meeting is scheduled in June.
AGREEMENT failed to SAUDI ARABIA
The agreement on a ceiling in the production failed to Saudi Arabia. The most important OPEC country called for the involvement of Iran, whose representatives had but omitted attend the meeting in Doha. After the end of economic sanctions, Iran is rather interested in expanding its delivery.
Experts of the US bank Morgan Stanley saw after the failed meeting in Doha again growing risks of an even higher offer of OPEC oil on the world market. These findings raise the game of supply and demand find a new balance until the year 2018th In the previous week, the International Energy Agency (IEA) had predicted that the oversupply could disappear on crude oil on the world market in the second half of this year almost.
OIL PRICES ONLY IN EARLY TRADE HARD VACUUM
After the price of a barrel (159 liters) of North Sea Brent for delivery in June fell on Monday in a first reaction to the failed meeting by almost seven per cent to $ 40.10, the price rebounded to lunch at $ 41.93. That’s still $ 1.17 less than on Friday. The price of a barrel of US West Texas Intermediate (WTI) for delivery in May also recovered strongly. He has also stood at $ 39.04 and was $ 1.34 cheaper than on Friday. The daily low while WTI was $ 37.61.
In the short term, a strike by oil workers in Kuwait affects it supportive effect on prices, commented analysts at the investment bank Goldman Sachs. In addition, the number of active oil rigs and production in the US last declined. According to Goldman Sachs Nevertheless, sustained price movements in the oil market remain initially high.
STOCK MARKET MAKES PART OF LOSS BETTING
The failed meeting in Doha could risk appetite noticeably to the markets as a whole only for a short time burden. In midday trading on the German stock index DAX was indeed in the red, but he lost only slight 0.26 percent to 10 025,31 points. The perceived safety of German bonds showed hardly changed after early gains around midday. On the foreign exchange market came currencies of commodity-producing countries such as the Canadian and the Australian dollar under pressure. Wanted contrast was considered safe Japanese yen.
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