Petroleum increases in price in connection with discussion of the UN Security Council resolution by the Iraqi parliament. Expecting that Saddam Hussein will accept conditions of the resolution, and this will remote the beginning of war, intensity on the petroleum market has weakened.
Petroleum increases in price in connection with discussion of the UN Security Council resolution by the Iraqi parliament. Expecting that Saddam Hussein will accept conditions of the resolution, and this will remote the beginning of war, intensity on the petroleum market has weakened. As the result, many traders have fixed profit after morning rise of the prices.
Petroleum becomes cheaper in connection with the news, that on Tuesday the International power agency has confirmed a significant gain in petroleum production of OPEC in October. The increase of oil extracting promoted reduction of prices for petroleum. IEA predicts essential growth of demand for petroleum in the forth quarter, connected with approach of winter and great demand for gasoline in the industrial countries. Under forecast of IEA, world demand for petroleum in 4th quarter will increase by 1,1 million barrels a day in comparison with the same quarter of the last year it is 78,1 million b/d more.
After closing stock exchanges the American institute of petroleum API has informed, that during the previous week commodity stocks of petroleum in USA were reduced by 7,23 million barrels to 282,83 million barrels. Stocks of gasoline the last week have increased by 1,03 million barrels to 195,16 million barrels. Stocks of products of petroleum distillation, including black oil and diesel fuel, have decreased by 1,12 million barrels to 123,33 million barrels.
Petroleum becomes cheaper in connection with the consent of Iraq to obey the resolution of the United Nations. Baghdad has agreed to allow international inspectors on arms in the country two days before a deadline established by the resolution. The prices for petroleum have sharply decreased. Consent of Hussein to return inspectors to Iraq has reduced probability of war and has finally washed away the military premium. It is expected, that the advanced group of inspectors led by the chairman of the commission of the United Nations on monitoring arms, Hans Bliks, will arrive in Baghdad on Monday.
Petroleum becomes cheaper in connection with reduction of commodity stocks of petroleum and mineral oil in USA. According to the Ministry of Energy of USA, during the week, which has finished November, 8, commodity stocks of petroleum were reduced by 6,9 million barrels to 283,6 million barrels. Stocks of gasoline have increased by 1,9 million barrels to 194,0 million barrels. Stocks of products of petroleum distillation, including black oil and diesel fuel, have decreased by 500 thousand barrels to 121,4 million barrels. However the level of petroleum import in USA has increased during last week almost by 100 thousand barrels a day and has reached on the average 9,2 million barrels a day.
Petroleum increases in price in connection with closing of short positions before the weekend. On Friday petroleum market has not received any special news, which could determine its direction precisely. Taking into account significant fall of the oil prices in the middle of the week and the further stagnation of the market, many "short" sellers have decided to fix profit before the weekend i.e. to close "short" positions by purchasing petroleum futures. As the result of their consumer activity the prices for petroleum have increased.