The previous week began with decline in oil prices.

On Monday, oil prices fell, but kept close to the record values two weeks after the news that Saudi Arabia will continue to keep production at the reduced level. Futures for Brent crude oil fell by $ 0.36 or 0.52% to $ 66.69 per barrel. April futures for oil WTI fell by $ 0.35 to $ 63.22 per barrel. The previous increase was due to the statements of Saudi Energy Minister Khalid Al-Faliha that the level of oil production in his country for the period January-March will remain below the agreement on the reduction of production of the maximum level. In addition, Al-Falih expressed the hope that after the completion of the agreement on oil reduction, the world's largest producers will be able to develop a long-term strategy to stabilize the oil market. The report of Baker Hughes that last week the American oil producers increased the number of drilling rigs by one more to 799, which became the maximum value since April 2015, remained almost without attention of traders.

Tuesday did not bring significant changes. The dynamics of oil quotations remained almost unchanged. The head of the International Energy Agency (IEA) Fatih Birol made an important statement that the United States will bypass Russia as the largest oil producer by 2019 at the expense of an increase in shale production. The volume of oil production in the US has already grown by more than 20% since mid-2016 to more than 10 million barrels per day. In its February review, the EIA increased the average annual growth forecast for oil production in the US. The department believes that the production of raw materials will increase in 2018 by 1.26 million barrels per day by 2017 to 10.59 million barrels per day. The head of the IEA also said that he did not expect a peak in oil production in the US until 2020. According to his calculations, the reduction in the volume of production of raw materials in the country in the next four to five years should also not be expected.
In conclusion, Birol added that he expects the increase in oil production in other countries, drawing attention to the situation in Canada and Brazil. As for demand, its growth, according to the head of the IEA, will be about 1.4 million barrels per day in 2018.

On Wednesday, oil prices again moved to a decline after the news about the growth of stocks in the US. Brent crude futures fell by $ 0.22 or 0.33% to $ 66.31 per barrel. WTI crude oil futures fell $ 0.28 or 0.44% to $ 62.73 a barrel. Oil prices declined after Tuesday night, the American Petroleum Institute (API) reported about the decrease in crude oil reserves in the US by 933 thousand barrels per week, which ended on February 23. Previously, the stock was projected to grow by 2.7 million barrels.

Thursday again did not bring any noticeable movements in the oil market. As shown by the Office EIA, US oil inventories increased by 3.02 million barrels to 423.49 million barrels last week, although analysts forecast an increase of 2.08 million barrels. In addition, oil production in the US in November reached 10.057 million barrels per day - a fresh maximum, but in December fell slightly to 9.949 million barrels per day, according to the EIA.

The week ended with a decline in oil quotes. The main negative news of the outgoing week was the report of the US Energy Ministry, which pointed to the growth of oil production in the country to the next record. The market also expresses concerns about the intention of US President Donald Trump to impose additional duties on imports of steel and aluminum from China at the rate of 25% and 10% respectively. In particular, this could lead to a jump in prices for steel pipes used in the oil industry.


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