Oil stumbled on growing inventories in the USWeek of rapid growth in the oil market, for which the quotation was shot almost 10%, suddenly cut short when fresh statistics on inventories in the US stores.
Referring to three-week high, quotes, "black gold" moved to lower on Tuesday and continued to fall on Wednesday trading. At 10.56 MSK futures Brent cheaper grade at 1.01% - up to 51.29 per barrel; WTI - on 0,86%, to 48.58 dollars.
Market "disappointed" Statistics from the API (American Petroleum Institute - Ed.), said a senior analyst at Price Futures Group Fil Flinn.
In the US driving season kicked off every year at this time the refinery "digest" Crude oil reserves are accumulated in storage in winter, during low market. "Everyone is waiting until the start this process, but it is not visible yet"- says Flynn.
For the week crude oil inventories rose again, at 882,000 barrels, while analysts forecast a decline of 1.2 million similar situation not only in the US. Production cuts by OPEC countries and Russia so far has failed to start the process "burning oil fat"Accumulated over the years of excess production - in January-March stocks in the world's vaults increased by 24 million barrels, and in April, according to preliminary estimates, the growth continued, the International Energy Agency said in a May report.
These reserves, which stubbornly refuse to confirm the balance of the market, have undermined the effect of the statements of Saudi Arabia in Russia, declared that the pact to reduce production will be extended until March 2018, says analyst BCS Mark Bradford.
Although the mining agreement is usually regarded as a victory, in reality it is a capitulation to the market, says the analyst of the Criminal Code "Alfa Capital" Denis Asainov and its extension - tantamount to admitting that de facto the deal did not work.