World Crude prices show diverse behavior

The influence of different forces in the beginning of February has shaped the prices for Brent around $55/bbl.

On the one side, the strengthening of crude cost in the beginning of February on the world market was due to the information regarding the cut in production by the OPEC countries and some other oil-producing states according to the agreements made to curb output and sanctions introduced by the US against Iran. The mentioned sanctions were set as the countermeasure to the launch of Iran its ballistic missile and in the future can lead to shrinking volumes of export from the country.

On the other side, the pressure on the crude quotes is applied from the information as to a number of operational oil rigs in the USA that reached its maximum in a year. Commercial crude stock together with gasoline and distillates continue to grow. Additional pressure on the quotes is driven by the sentiment of the market players as to the possibility of demand deterioration in China. Against the background of sufficient amount of crude oil products in the country, in February the biggest refineries are set to go for regular overhaul and repair, together with the cut in quotas on import crude to mini oil refinery plants.