Despite showing weak growth on Thursday morning, the price of crude oil managed to consolidate near the maximum values for the last five months. Market participants remain closely monitoring Gulf of Mexico weather reports regarding the movement of Hurricane Laura. According to forecasts, it is now a category 4 storm, after its strength was recorded yesterday. In this regard, oil production and refining facilities located in the Gulf of Mexico have no choice but to suspend their activities. At present, about 90% of installations have temporarily stopped working.
However, the oil market was given a positive dynamic by the statistics on the level of reserves of raw materials in the US on Tuesday evening. As it became known, the number of stocks over the past week, ended August 21, decreased quite well by 4.69 million barrels. Now the total volume of reserves is at 507.76 million barrels.
Gasoline stocks also went down by 4.58 million barrels, leaving a total amount of 239.18 million barrels. Distillates, on the contrary, increased by 1.39 million barrels, which moved its level at 179.2 million barrels.
Experts' preliminary data were somewhat more modest. They expected a decrease in inventories by no more than 2.59 million barrels, and gasoline to reduce by 1.75 million barrels. As for distillates, experts expected a decrease of about 50 thousand barrels, but the opposite happened.
Nevertheless, the statistics turned out to be quite positive, which acted as a factor supporting the oil market. However, there were also some negative factors observed. Investors still fear the growing cases of coronavirus infection around the globe, as well as cases of re-infection, which have begun to be recorded in different countries. This, of course, forces market participants to be somewhat cautious and suggests that demand for raw materials may come under pressure in the near future.
The price of Brent crude oil futures for October delivery on the London trading floor increased on Thursday morning by 0.26% or $ 0.12, pushing it to $ 45.76 per barrel. Note that Wednesday's trading session ended with a drop in the value of raw materials by 0.5% or $0.22.
The price of WTI light crude oil futures contracts for October delivery on the electronic trading floor in New York slightly increased by 0.02% or $ 0.01. Its current price level is around $ 43.40 per barrel. Wednesday's trading session closed with an increase in the price of futures by 0.09% or $ 0.04.
Despite the rather ambiguous and uncertain movement of prices in the market, the still manage o consolidate near the maximum values recorded in March (that is, even before the impact of the coronavirus pandemic began). And the Brent brand has generally updated its maximum levels, which allows us to say that after a slight correction, the upward movement will continue with renewed vigor, unless there are other serious factors limiting growth. So far, such factors are the growth of COVID-19 infections and possible new restrictive measures associated with this.
