“Recent Oil price decline is only temporary” but still lower despite the expectation

August 9, 2016

Declining Oil Price awaiting for American Petroleum Institute (API) Report.

“Recent Oil price decline is only temporary” but still lower despite the expectation

This article is originally referred from FXNet Market News

Oil prices were lower ahead of API report and as talks of an OPEC (Organization of Petroleum Exporting Countries) non-OPEC meeting continued to drive the market.

Brent crude for October delivery lost 40 cents trading at 44.99 dollars a barrel by 04:20 GMT. The commodity had lost around 15 percent in July while in August it has gained around 6 percent.

Crude oil on the New York Mercantile Exchange has lost 36 cents trading at 42.66 dollars a barrel. Last month it had lost around 14 percent, but recovered 2.5 percent in August.

Since early this year the possibility of an oil output freeze has been on the table but not yet decided on. Expectations on a meeting between OPEC and non-OPEC countries in the coming weeks has increased.

Energy Minister of Qatar Saleh al-Sada said that OPEC will hold an informal meeting for member countries in Algeria between the 26thand 28th of September, however Russia – a non OPEC country – has showed disinterest and the chances of this meeting becoming an OPEC non-OPEC meeting are thin.

“The recent decline observed in oil prices and the current market volatility is only temporary” Al-Sada said “OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market”.

Later in the day the American Petroleum Institute (API) will release reports on US crude inventories up to the end of last week, followed by more accurate figures released on Wednesday by the US Department of Energy.

Original Source: FXNet Market News

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