Oil prices are falling, and the price of the US benchmark WTI reached a six-year low, due to the strengthening of the dollar and the reduction of warehouses in the world.
Brent futures fell $ 0.49 to $ 54.18 a barrel, while futures for WTI – by $ 0.63 to $ 44.21, before falling to the lowest since March 2009 level of $ 43.57, according to Reuters.
China enjoys low prices to replenish strategic reserves, making imports reached record levels despite the economic slowdown, but analysts say the new warehouses there will be through a few months.
“Although the reserves (in China) are likely be to grow due to the low prices, the replenishment of strategic stocks will prevent a shortage of warehouses. But imports may rise a few months before the opening of a new warehouse for strategic reserves,” – said analyst FGE Wendy Yong.
Analysts also note the filling of the oil storage tanks in the United States.
“Investor sentiment influenced predictions of the International Energy Agency, the US could completely fill the storage tanks, and the assumption that the global production in February increased by 1.3 million barrels per day compared to the previous year to 94 million barrels,” – the report says ANZ .
The report of Morgan Stanley says that US oil companies to resume production at the wells that shut down due to the cold weather. According to the bank Goldman Sachs, reducing the number of active drilling rigs in the United States will cause only a slight decrease in production in the second quarter.
The market is also affected by the strengthening of the dollar: the euro in trading in Asia fell to its lowest level since January 2003 $ 1.0457.