Oil is trading mixed

Oil is trading mixed© AP Photo/ Eric Gay

The FTSE is trading without the common price dynamics as investors play data US Department of energy about the unexpected growth of oil reserves and preparing for the imminent entry into force of the agreement OPEC and outside the cartel of governments to reduce production of «black gold», according to the auction.

Meanwhile, some traders are preparing for the upcoming entry into force of the agreement of OPEC to reduce its production by 1.2 million barrels per day — up to 32.5 million barrels. Non-OPEC countries agreed to reduce their production a total of 558 thousand barrels per day, including Russia — 300 thousand barrels. The reduction will start in January.

Traders will closely monitor the implementation of this agreement and the pledges of participating countries to reduce production. «The market hopes that the parties (involved in the agreement — ed.) will this time keep the quotas for the production, because everybody wants growth in oil prices», — quotes the edition of The Wall Street Journal speech SCI International analyst Gao Jiang (Gao Jian).

Friday also is expected to release the weekly statistics of the us oil service company Baker Hughes on the number of oil and gas rigs in the United States on December 30. At the end of 23 December work week the number of drilling rigs in the US increased by 16 units, or 2.5%, to 653 units. In annual terms, the figure fell to 47 units, or 6.7%.

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