Russia is once again risk short billion in budget amid rising production in the U.S., the oil market resumed its sharp fall

Since October of last year the volume of oil production in the U.S. grow without stopping, increasing the market for 748 thousand barrels of new daily supply.

After the publication of the
The US Department of energy weekly statistics on reserves and production of “black
gold”, the value of its principal reference varieties decreased by almost 2% and
has reached the minimum values for two-and-a-half weeks, reports “Dialog
UA”.

Brent
Brent has fallen in price to dollar 53.83 per barrel, increasing losses to 4.1% over the past
three days. In turn, the June futures contracts for WTI crude oil reached
the low from April 7 and traded at a price 51,85 dollar per barrel.

Last
week the production of “black gold” in the United States has increased by 17 000 barrels
per day, reaching a record level since the summer of 2015.

Is
to note that since October of last year the volume of oil production in the United States are growing up without
stops, increasing the market for 748 thousand barrels of new daily supply.

Raw
strategist at Sberbank CIB Mikhail Sabe expects to increase daily crude oil production in
America more than 1 million barrels per day. This should completely block
reduction, hosted by the OPEC countries. It is also known that in deal with these
countries joined Russia, which is especially painful impact reduction
the price of “black gold”.

Unsold
the oil reserves in the US amount to 532 million barrels, which exceeds the average level for the
the last thirty years.

“Refinery
we can only pray that the upcoming car season helped
to clear the market”, says Cowen analyst Sam Margolin.

In his
turn, an analyst with VTB24 Alexey Mikheyev believes that oil could fall below 50
dollars per barrel in the coming months.

“As
soon will come the understanding that much of the growth of oil, the market will go
sold at still attractive prices the historical record stocks,
already accumulated now”, – the expert believes.

As previously
it was reported that Saudi
Arabia reduced oil prices for European partners, in an effort to win
the competition in the Russian Federation.