FX.co ★ Oil price correction impedes growth prospects

The price of crude oil went correction on Thursday after a fairly good increase during the previous day. At the end of Wednesday's trading session, growth was recorded, however, by Thursday it was not possible to maintain the emerging trend.

The raw materials market was well supported by news about the reduction of oil reserves in the United States on Wednesday. Thus, market participants will closely monitor the progress of the remote meeting of the monitoring committee of OPEC ministers on Thursday.

According to official statistics, commercial crude oil reserves in the US in the past week, which ended on September 11, decreased by 4.39 million barrels and reached 496.04 million barrels. In addition, bad weather conditions and a hurricane approaching the coast of Alabama forced oil producers to stop their production again. According to the Ministry's Bureau of safety and environmental protection, about 27.5% of oil production facilities located in the Gulf of Mexico have been temporarily disabled to date. Weather conditions may force the suspension of even more oil production facilities. Of course, this may provide temporary support for black gold, since demand will be limited for a certain period of time, but not so much as to create a deficit. The danger of such a situation is related to the fact that after the resumption of oil production capacity, the pressure on demand will be felt with renewed force.

The price of futures contracts for Brent crude oil for delivery in November on the trading floor in London tanked 1.23% or $0.52, which moved it to the level of $41.7 per barrel. Wednesday's trading ended on a positive note with a significant increase of 4.2% or $ 1.69, which allowed it to recoup some of the losses of recent weeks.

The price of futures contracts for WTI crude oil for October delivery on the electronic trading floor in New York also moved down in the morning. Its decline was 1.42%, or $ 0.57, and the current level is $ 39.59 per barrel. The trading on Wednesday ended in the green zone: a significant increase was achieved - by 4.9%, or $ 1.88.

The price of futures contracts for WTI crude oil for October delivery on the electronic trading platform in New York also went down by 1.42% or $0.57, making the current level at $39.59 per barrel. Wednesday's trading ended in the green zone with a significant increase of 4.9%, or $ 1.88.

Investors are convinced that following the meeting of the OPEC monitoring committee, no significant documents will be adopted that could lead to a series of major changes in the market. It is clear that the main issue of the meeting will be in compliance with the agreement to reduce the production of raw materials.

Analysts say that nothing supernatural will happen at the meeting and no strategically important decisions will be made. The Ministers will focus on controlling production. On the one hand, such calmness is good, if only because it will not bring a new wave of negativity. On the other hand, there is no reason to believe that the market will receive support so that the price of raw materials will again sharply rush to the strategically and psychologically important indicator of $45 per barrel.