Oil on NYMEX jumped in price during Asian session

Oil on the NYMEX jumped in price during the Asian session

Oil prices rose significantly on Monday during the Asian trading session, as investors watch for disruptions to production in Nigeria and the situation in Venezuela.

On the New York Mercantile Exchange WTI crude oil for delivery in June rose by 1.38% to $ 46.85 per barrel. Brent crude jumped by 1.36% to $ 48.48 per barrel.

This week the focus will be oil traders in the US crude oil reserves, which will appear on Tuesday and Wednesday, and may point to future changes in demand and supply.

Last Friday, the company Baker Hughes, which provides services for the development of oil fields, reported that the number of drilling rigs in the US last week fell by ten to 308, down an eighth consecutive week. At the same time last year, the rig count was 660.

On Friday, oil futures fell in price for the first three days, retreating from the highest level in six months, as traders decided to take profits due to concerns about oversupply in the world oil market.

OPEC in April extracted 32.44 million barrels per day, 188 thousand. More than in March, the organization said in a report released Friday, the monthly report.

Oil production in OPEC is at its highest level since 2008, as the West lifted sanctions with Iran, and the Russian initiative and other non-OPEC countries to combat oversupply by freezing production volume failed.

The organization warned that an excess of oil on the world market may increase this year, as the growing volume of production of its members compensates for lower prices caused by the decrease in production in other countries.

On the Intercontinental Exchange futures for Brent crude for delivery in July dropped in price by $ 0.25 (0.52%), finishing the week at $ 47.83 a barrel.

Brent rose in price because of the attack on militants messages Chevron oil platform in the oil-rich Niger Delta, as well as the escalation of the conflict in Libya.

In Venezuela, the political and economic instability, coupled with lower oil prices hit the Bolivar and increased the probability of bankruptcy PDVSA’s national oil company, which is nearly $ 5 billion needed to pay for bonds this year.

for Brent prices rose by about 65%, after falling below $ 30 a barrel in mid-February, despite the failure of the negotiations at the summit in Doha in April. At the summit of oil producers (both OPEC and non-members) discussed the idea of ​​freezing the volume of oil production. OPEC members will meet at the next meeting in Vienna on June 2, and possibly return to this proposal.

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