Weak oil becomes cheaper on fears about declining demand for it

© RIA Novosti / Vitaly to Timepiece in fotosannette the machine-rocking. Archival photoWeak oil becomes cheaper on fears about declining demand for it© RIA Novosti / Vitaly to Timepiece the image Bank

The world price of oil is weakly declining on Thursday morning, as traders remain concerned about the reduction in the processing of raw materials after the storm «Harvey», according to the auction.

As of 09.41 MSK price of November futures for North sea petroleum mix of mark Brent has decreased on 0,06%, to 50,70 USD per barrel. The price of October futures for WTI crude oil fell by 0.04% to 45,94 per barrel.

Investors are still concerned about the effects of hurricane «Harvey» in the United States, which on Friday hit the coast of the Gulf of Mexico. On Thursday morning, «Harvey» was transferred to the status of «tropical depression» with wind speed of 55 kilometers per hour. At the peak power constant wind speed of the hurricane reached 215 kilometres per hour. Now, «Harvey» is located in the Central part of Louisiana.

In the markets there are still concerns regarding whether the reduction of oil reserves in the United States to compensate for a sharp decline in demand. So, energy Ministry data released Wednesday, did not significantly affect the prices.

According to the Ministry, commercial oil stocks in the country (excluding strategic reserves) for the week ended 25 August, fell by 5.4 million barrels, or 1.2% to 457,8 million barrels. Analysts were expecting a reduction of only 0.41%, or 1,908 million barrels.

While oil production in the U.S. last week, according to the Agency, increased by 0.02%, or 2 thousands of barrels a day to 9.53 million barrels per day. The oil reserves in the country’s largest terminal Cushing (Cushing) has increased by 0.7 million barrels, reaching 57,2 million barrels.

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