The crude oil market is again under pressure forcing prices to decline on Wednesday. This is in light of the publication of a report by the American Petroleum Institute (API), which contains another portion of statistical data on changes in the level of oil reserves in the US.
According to the latest estimates, the level of black gold reserves in the country increased by 691,000 barrels last week, which ended September 18. The level of gasoline inventories, on the contrary, decreased by 7.7 million barrels, and distillates went down by 2.1 million barrels. Stocks of raw materials at the strategically important terminal in Cushing increased by 298,000 barrels.
However, according to experts' initial estimates, the official data, which will come from the US Department of Energy, will reflect the next drop in the level of reserves by about 4 million barrels. At the same time, the level of gasoline will also be lower by 1.9 million barrels, while distillates, on the contrary, will rise by 1.2 million barrels.
Experts refer to the fact that the weather conditions in the Gulf of Mexico have been extremely unfavorable recently, which has made adjustments to the operation of oil production facilities. This, in turn, led to a temporary decline in production. Moreover, hurricanes continue to plague the US coast and particularly in the state of Texas. This could cause further disruptions in production.
So far, according to the estimates of the United States Bureau of Safety and Environment, to date, about 7.1% of all oil production facilities in the Gulf of Mexico have been shut down. This is much less than in August, when Hurricane Laura paused almost all production, but even this number already makes adjustments to the total volume of oil produced in the US Moreover, weather forecasts do not promise positive changes in the near future, and bad weather conditions may continue ahead.
The official report from the US Department of Energy is expected by Wednesday afternoon. Investors are already looking forward to it since the dynamics in oil prices will depend on the numbers that will be indicated on the said report.
The price of futures contracts for Brent crude oil for delivery in November on the trading floor in London fell 0.77% or $ 0.32, which forced it to move to the level of $ 41.4 per barrel. Tuesday's trading session ended in the green zone, with a growth in the brand by 0.7% or $ 0.28. The price was fixed in the range of $ 41.72 per barrel.
The price of futures contracts for WTI crude oil for delivery in November on the electronic trading platform in New York also went down by 0.7% or $ 0.29, leaving the current price at $ 39.6 per barrel. On Tuesday's trading, the brand gained 0.7% or $ 0.26, and the price was fixed at $ 39.8 per barrel.