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WTI oil prices fell sharply today, reaching a three-year low at the same time, since Saudi Arabia lowered the price to buyers from the US. The cost of Brent, the meanwhile, fell to a four-year low.
As it became known today, Saudi Arabian Oil Company reported a decrease in export prices for oil for the US and Asia. "This move by Saudi Arabia indicates that it tries to keep its market share in the US, which has recently declined slightly. Apparently, the Saudis feel comfortable at this price and level of demand, "- said the expert Again Capital LLC John Kildaf. According to him, it seems that Saudi Arabia expects that growth in demand for oil in the winter will allow them to strengthen the position.
"Proposal of crude oil is very high, - said the representative of the consulting firm Energy Security Analysis Sarah Emerson. - The situation is still characterized by significant volatility. I would not be surprised if by the end of the year, Brent closer to $ 80, while also quite possible that it will be at the level of $ 95. "
Pressure on prices has also had today's decision of the European Commission lowered its forecast for economic growth of the eurozone for 2014, citing tensions in Ukraine and the Middle East, along with a lack of investment. The agency said it now expects gross domestic product growth in the block by 0.8% this year compared to the spring forecast of 1.2%. In 2015, the eurozone economy is likely to expand by 1.1% compared with the previous forecast of 1.7%.
Another reason for the decline in value is a concern about the weakening global demand, as well as signs that the Organization of Petroleum Exporting Countries will not cut production to support oil quotations, also exert pressure in recent weeks. Some market analysts believe that only a reduction in production in the oil cartel will stop the fall in prices.
The course of trade is also affected by expectations of the publication of new data on stocks of crude oil and petroleum products in the United States to gauge the strength of demand in the largest consumer in the world.
The cost of December futures on US light crude oil WTI (Light Sweet Crude Oil) fell to $ 76.58 a barrel on the New York Mercantile Exchange (NYMEX).
December futures price for North Sea petroleum mix of mark Brent fell $ 1.57 to $ 82.47 a barrel on the London exchange ICE Futures Europe.
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