OIL FUTURES: Quotes in New York fell amid concerns about the new downtrend

Oil futures on Friday in New York continued to decline. Market participants worry that can form a new downtrend.

This week for WTI oil futures were down every day, losing 7% after the April 11 the 30-day maximum. Many in the market had previously expected a sustainable rally, and OPEC leaders this week even admitted the possibility of further cuts in oil production. The inability of prices to grow, despite all the positive factors that causes traders to indicators oriented moment, betting on further price falls.

June futures for WTI crude oil traded on the ICE Futures Europe was down $ 1.07, or 2.1%, to 49.64 dollars per barrel, a new low. Brent crude oil added to the price of $ 1.02, or 1.9%, at 51.97 dollars per barrel.

"Many believed that prices may add another (approximately) 50 cents per barrel"- says Rick Neyvi, senior vice president, R.J. O'Brien Associates LLC on oil and gas futures. However, hopes were illusory, he adds.

On Thursday, Saudi Arabia's Minister of Energy Khaled Al-Falih said that many OPEC countries have reached a preliminary to further cut production agreement. However, other applications of the cartel were too vague. It is believed the brokers and analysts, OPEC may extend the agreement only three months instead of six, or does not renew it.

The sudden increase in commercial stocks of gasoline in the United States, which became known on Wednesday, led to lower prices for only one session of about 4%. US Department of Energy also reported a slight increase in oil production in the country, which has increased anxiety about the ability of shale oil producers to increase production even at current prices.

Technical traders, apparently also enhance the fall in prices. Thursday ended with an appeal of the May futures prices fell on this background that many might consider a negative signal, especially after the price drop a few sessions in a row.

"If oil finish on Friday below $ 50 a barrel, it could signal a weakening of risk appetite"By promoting further sales, said Tariq Zahir of Tyche Capital Advisors LLC.

At the same time rely on too strong a drop in prices is also difficult, because in May, OPEC plans to hold a meeting and possibly extend the deal to cut production adds Zahir. Yet, many have noticed how weak prices rebounded on Thursday after the Saudi oil minister, and how fast the oil is cheaper Friday, say brokers.

"Lack of (severe) reactions (on the application of the Saudi minister) can be explained by a cloying, since such news come almost every day, or that the purpose of the OPEC agreement - reduction of oil and oil products - is still very far from achieving the"- explain in Commerzbank.

World oil reserves are higher than the average 5-year levels, which are guided in the implementation of OPEC production cuts. Many analysts expect that stocks will soon start to shrink, showing delayed effect after the reduction of production cartel in the 1st quarter, as the supply of oil from the main production regions require a lot of time. However, the fact that stocks remain high, can scare the market, provoking further sale, unless OPEC does not prolong the deal, analysts said.

"The term of the new agreement, the number of participating countries, as well as the degree of reduction in production remain major unknowns"- said Vivek Dhar from Commonwealth Bank of Australia. If the deal will be extended only for one quarter, it will call into question the long-term recovery of the market, since it does not participate in the agreement of the country will increase production again, which potentially lead to another increase in inventories.