Oil prices continue downward trend
At this time (10.30 hours GMT+1), West Texas Intermediate (WTI) crude oil futures change to $41.51 per barrel, 0.81 percent lower, while Brent is traded at $44.09 per barrel, 0.79 percent below.
Market is skeptical due to OPEC meeting on this Friday
“The market is a little anxious and unstable, but is still cautious,” said Matt Smith, analyst at Clipper Data. “Friday is going to be an important day for oil market,” as that day the OPEC will begin a meeting to decide “whether to cut production in order to reduce global glut,” he added.
US job figures will be revealed on Friday, which may indicate if the Federal Reserve will Xnally decide to increase interest rates two weeks from now. If interest rates get increased, the dollar becomes more expensive for those who use other currencies and require green bills to buy crude. Oil market “clearly has its doubts whether they will adopt production restraint to make room for a likely 2016 increase in Iranian production or to rebalance the market in support of higher prices,” said Tim Evans,
analyst at Citi.
Worries are focused on US oil Stocks
Japanese major JX agreed to merge with the third Japanese oil company
Japanese major JX Holdings has entered a merger agreement with its competitor TonenGeneral Sekiyu, in a new restructuration of the oil sector in Japan after the continued fall of oil prices. This transaction takes place two weeks after the merger between Idemitsu Kosan and Showa Shell Sekiyu, giving rise to the second major company of the sector in the Asian country by sales volume, with 7.6 yen trillion (€58.5 billion).
Francisco Neri Bonilla