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Ironically, oil prices continue to decline in spite of the fact that the US Department of Energy on Wednesday reported a drop of oil in the country's stores to 2.342 million barrels for the week July 9-15. Despite the fact that commercial US crude stocks are reduced 9th week in a row, the excess of the current level of reserves compared to the average for similar date last 5 years increased to 34.7%. Obviously, despite the drop in oil stocks, they are redundant.
The excess supply of oil, which is observed for the second year, moved into an excess of oil supply. Excess oil reserves have exceeded even the record seasonal demand.
Following the auction on Thursday, futures for Brent oil fell in price by 0.6% to 46.91 dollars per barrel, futures for diesel fuel fell in price by 0.7% to 1.3959 dollars per gallon.
As the reduction of petroleum products in view of the end of the holiday season, the price of oil demand may get an additional boost to decrease. Many oil market analysts expect the fall from refineries in oil demand in the coming months.
Investors' concerns regarding a slowdown in the Eurozone economy and oil consumption in the region, and oil consumption in the euro area is about 15% of the total world supply, are growing.
Hardening the US dollar, as well as the continued uncertainty in the global economy against the backdrop of Brexit UK, also contribute to lower prices for commodities, including oil.
Today at 17:00 (GMT) will be published report oilfield services company Baker Hughes in the US in the number of active drilling rigs, which is an important indicator of the activity of the oil sector of the US economy and significantly affects the quotations of oil prices.
It should be noted that there is a steady increase in the number of active drilling rigs in the USA for the last 6 weeks. At the moment the amount is 357. If the number of active drilling rigs in the US will grow again, then the price of oil will get an additional impetus to the reduction.