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Crude prices fall on world markets

18 August 2017 [13:48] - TODAY.AZ

By Azernews


By Sara Israfilbayova

World oil prices fall on August 18, following the general trend in the U.S. and Asian markets to actively sell shares.

Brent crude futures, the international benchmark for oil prices, are at $50.97 per barrel, down 0.12 percent, while U.S. West Texas Intermediate (WTI) crude futures are at $47.03 per barrel, down 0.13 percent, according to RIA Novosti.

The trend for a decline in prices on the U.S. and Asian stock exchanges was triggered by the growing doubt among traders regarding the implementation of the economic reforms promised by President Donald Trump.

Previously, Trump planned to suspend the Patient Protection and Affordable Care Act, or nicknamed Obamacare of previous U.S. President Barack Obama, adopted in March 2010 but the Senate voted against the new bill.

Moreover, earlier Trump spoke about the development of infrastructure in the country, the implementation of tax reform and the adoption of economic incentives, but no specific comments on these plans, which investors expect, did not follow.

Traders also expect data on the number of drilling rigs in the U.S., following the results of the week from the American oil and gas service company Baker Hughes, a GE Company (BHGE), which will be published later on August 18.

Analysts note that the decline in oil prices occurs even against the backdrop of positive statistics on the reduction of weekly oil reserves in the U.S.

Earlier this week, the Energy Information Administration (EIA) reported a decrease in commercial oil reserves in the country by 8.9 million barrels, or 1.9 percent-to 466.5 million barrels. Experts believed that stocks decreased only by 0.64percent.

OPEC and other oil producers, such as Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan made a deal in December 2016 to remove 1.8 million barrels a day from the market.

OPEC+, trying to reduce a crude glut, decided in May to extend the supply cut through March 2018.

URL: http://www.today.az/news/business/164184.html

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