Oil prices are correcting upwards after a fall. By market close yesterday, Brent stood at $49.61 per barrel, whilst WTI with September delivery reached $45.29. Brent is trading today around $49.8 per barrel, with WTI at $45.6.
We reckon that the correction won’t be sustained for long since the potential for a further downing of the prices has not yet come to an end: $47 per barrel of Brent is looking a real prospect. The reasons for a fall in prices remain as they were: a slow in Chinese economic growth, a rise in production and a fall in demand.
Tonight the American oil institute will publish its data on oil reserves in the country and tomorrow will see the same data out by the US Energy Information Agency. If reserves are seen to be growing, then a market correction will take place.
The US congress is discussing the Iran nuclear program and each new announcement from the discussion participants sees a market reaction. On the whole the corrections are not in favor of a growth in prices.