The United States in May WTI crude oil futures on Wednesday (March 23rd) fell $1.66, or 4%, at $39.79 / barrel. On Wednesday May Brent crude fell $1.32, or 3.16%, at $40.47 / barrel. The terrorist attack effect has passed, but the U.S. crude oil inventories last week jumped nearly 9 million 400 thousand barrels to the market worry, while the dollar higher strength also increased the downward pressure on prices, investors worried about the prices of recent gains fear suffered reversal. U.S. WTI crude oil futures prices hit $39.70 / barrel, Brent crude oil futures prices hit $40.43 / barrel.
Fundamental positive factors
The U.S. Energy Information Administration (EIA) the latest data show that as of March 18th week U.S. gasoline inventories fell 4 million 642 thousand barrels, the largest since April 5, 2014 when the week decline, the main crude oil delivery, Oklahoma, Cushing area stocks fell 1 million 258 thousand barrels, seven weeks for the first time decreased and the biggest weekly drop in September 11, 2015. While the United States last week, the average daily crude oil output decreased by 30 thousand barrels to 9 million 38 thousand barrels / day.
Qatar's oil minister Bin Saleh Al-Sada Mohammed, said the organization of Petroleum Exporting Countries (OPEC) and non OPEC oil producing countries plan to hold talks in Doha in April 17th, to discuss the production of freezing agreement. He added that 15 OPEC and non OPEC oil producing countries have expressed support for the proposal.
The International Energy Agency (IEA) said the new moon, or oil prices have bottomed out, because the United States and other non OPEC oil production (OPEC) drop speed, at the same time, Iran crude oil production growth is not expected to significantly. IEA pointed out that this year's non OPEC oil production will drop 750 thousand barrels per day, from barrels / day predicted before the 600 thousand reduction of nearly 25%, the U.S. crude oil production this year will fall by 530 thousand barrels / day. In addition, IEA said that in February OPEC crude oil production will fall by 90 thousand barrels / day, due to Nigeria, Iraq and the United Arab Emirates and other countries, some of the production of the accident, the total output fell to 350 thousand barrels / day.
Fundamental negative factors
The U.S. Energy Information Administration (EIA) announced the latest inventory data show that as of March 18th week U.S. crude oil inventories increased 9 million 357 thousand barrels, a new record high, is three times more than analysts expected an increase of 3 million 90 thousand barrels, the former value increased by 1 million 317 thousand barrels, inventories reached 532 million 500 thousand barrels, an increase of 1.8%. U.S. crude oil imports increased by 691 thousand barrels per day, the highest in 2013.
International Energy Agency, a senior official said, OPEC member countries and Russia reached a frozen production agreement may be meaningless, because Saudi Arabia is the only country in which the participants have the ability to increase production of crude oil. Once Libya and Iran both absence in April 17th Doha conference, OPEC and non OPEC oil producing countries of the frozen production agreement will be covered by the shadow, because these two countries have ample capacity to increase production.
Although new home sales data were mixed, but the dollar index continued upward trend. Since this week, Fed officials have made a speech, it is not difficult to see the Hawks officials obviously, this also with the Fed's dovish statement last week in stark contrast, the dollar bulls encouraged. On Wednesday, the dollar rebounded momentum abnormal enough, refresh one week high to 96.14, won most of the decline on Wednesday, 42 days. U.S. dollar rebounded to pressure the oil price. According to the latest data released by the U.S. oil service company Hughes Beck (Hughes Baker), as of March 18, 2016 last week, the number of active oil drilling in the United States increased by 1 to 387 seats, the first increase since last December 18th.
The latest data show that in February 2016 the average daily output of Russian crude oil was 10 million 880 thousand barrels, unchanged from the January level, still maintained at a record high after the Soviet Union, due to the depreciation of the depreciation of the depreciation of the oil to offset the pressure brought about by the oil price.