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Prices for Brent crude fell markedly today, closer to $ 91 a barrel amid fears that the weak economic growth in Europe will reduce demand for fuel. The cost of oil WTI, meanwhile, fell to 17-month low.
Earlier today, the leading economic think tanks in Germany cut its growth forecasts for the domestic economy for this year and next, citing weak domestic and external demand and the fragile situation in the eurozone. Economic research institutes in a joint report published forecast that Europe's largest economy will grow by 1.3% this year and by 1.2% in 2015. Earlier it was expected expansion of 1.9% and 2.0%, respectively.
"Economic activity has declined in the second quarter and is likely to show stagnation in the third quarter," - said the institute. The experts also urged the government to improve investusloviya and growth factors. As we have previously reported data pointed to German exports fall fastest pace since 2009.
Lower prices also help yesterday's data on stocks. US Energy Information Administration in its weekly report reported that crude oil inventories in the United States increased by 5 million barrels for the week ending October 3, confounding expectations for a gain of 1.6 million barrels. The report also showed that gasoline inventories rose by 1.2 million barrels, confounding expectations for a decline of 1.0 million barrels. The data came the next day after the American Petroleum Institute reported that crude oil inventories rose by 5.1 million barrels for the week ending October 3, exceeding the expectations of growth of 1.4 million barrels.
It should be emphasized that many market participants are looking forward to the scheduled meeting of OPEC, which will be held on November 27th. Everyone hopes that OPEC will decide on the reduction of production quotas, which have remained unchanged since 2011. Therefore, the forecasts of the leading banks and investment laid prices at $ 90 to $ 105 per barrel in 2015.
The cost of the November futures for the American light crude oil WTI (Light Sweet Crude Oil) fell to $ 86.64 a barrel on the New York Mercantile Exchange (NYMEX).
November futures price for North Sea Brent crude oil mixture fell $ 0.72 to $ 91.05 a barrel on the London exchange ICE Futures Europe.
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