The price of oil fell short on the collapse of us 1.35%
The United States NYMEX WTI Monday (January 18th) March crude oil futures fell $0.41, or 1.35%, at $29.98 / barrel. This week opened by Iran to lift economic sanctions and on the weekend the impact of global stock market crash, oil prices fell nearly $1, and a gap Tiaokong 30.20 to 3.04 U.S. dollars / barrel between the left. Since oil prices due to buying is expected to sell the fact, short covering the gap, and recorded the highest intraday $30.90 / barrel in the matching period in europe. But the lifting of sanctions against Iran at the same time also means that the supply of excess supply of crude oil market will usher in more supply, oil prices fell again to 30, below the dollar / barrel. U.S. disk time, due to the United States Luther King Martin day market, so the United States WTI crude oil futures market today ahead of the rest of the market.
At the same time, ICE Monday, March Brent crude oil futures prices fell $0.27, or 0.93%, at $28.67 / barrel.
Monday, the United States cloth two oil despite the intraday rose to $30 / barrel above, but ultimately to close at the bottom of the point. For the problem of excess supply of crude oil, once again returned to the focus of the people.
For the already supply flooding of the crude oil market, Iran oil deputy minister in the west after the lifting of sanctions, said that Iran has been ready to increase crude oil exports 500 thousand barrels / day. Many market watchers believe that, in the next few weeks, the worst is about to happen, and that is where the price of oil will soon be tested under $25 / barrel.
Morgan Stanley wrote in the report, the market will respond to the news at the beginning of the week, but the market has been to a large extent this impact included in the price of the. Added that the lifting of Iran's economic and trade sanctions, Iran may bring some normalization, has been a significant economic growth.
Morgan Stanley believes that because of refining capacity Co., in order to meet the needs of crude oil exports, local gasoline demand and imports may have greater growth, which can offset part of the supply of crude oil increment.
At present, the Iran crude oil in the end when it can be exported to the world market is still unknown. There are many problems to be solved, including the storage of Iran crude oil, and how much crude oil can be released to the market immediately, as well as in Tehran in order to increase market share to provide more promotional efforts and so on.
The Swiss bank's commodity research director Norbert Ruecker said, Iran has a high-quality oil and gas resources. But to give full play to its potential, but also the need for long-term investment and the participation of large enterprises in the international. For today's market environment, it does not seem to have these conditions.
According to Barclays Bank, the U.S. crude oil production has been at the top of 9 million barrels / day, however, there are signs of decline in demand. The bank said that the United States is now the demand for refined oil is 800 thousand barrels / day, below the average level in January 2015. Since January 2016 temperatures higher than last year 15%, warm winter is the factor of a decrease in demand. However, Barclays warned that demand is so steep, there may be a deeper problem.