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Oil price in free fall

After relatively quiet last week, this week began on raw materials markets with a strong accent.

After relatively quiet last week, this week began on raw materials markets with a strong accent.

The CRB index recorded a decrease by 2.1% up to 220.83 point This was primarily due to the sale of energy raw materials on the markets, as well as on the copper, cereals and some soft communities (e.g....

After relatively quiet last week, this week began on raw materials markets with a strong accent. The CRB index recorded a decrease by 2.1% up to 220.83 point This was primarily due to the sale of energy raw materials on the markets, as well as on the copper, cereals and certain soft communities (e.g. coffee).

Continuation of oil price drops

OPEC will not lift a finger to support oil listing. The fact that the cartel does not intend to change its oil production strategy has already been said several times by the Saudi oil minister Ali Al-Naimi

The leader of the discounts was yesterday's WTI oil listing, which fell almost into a free fall and continue it this morning. American raw material was discounted by over 5%, and the price of a barrel fell below 46 USD. This morning it is already below 45 USD.

Olives in the oil market are still adding the statements of important producers of this raw material to the fire. Today the oil market situation was commented by the United Arab Emirates oil minister, Suhail bin Mohammed al-Mazroui. He said that the rapid reversal of the decline in oil prices is unlikely. He stressed that the oversupply resulting from shale oil production in the United States had to have a corrective impact on the market and now it takes time for prices to stabilise.

Mazroui also added that OPEC would not lift a finger to support oil listing. The fact that the cartel does not intend to change its oil production strategy has already been said several times by the Saudi oil minister Ali Al-Naimi, who stressed that even at a price level of 20 USD for a barrel of OPEC oil will not restrict the production of this raw material.

The moods on the oil market have not even changed the good data coming from China. Last night, it was reported that December oil imports to China were above 7,000,000 barrels a day, which is a record. However, this figure has been interpreted not as a sign of recovery in China's economy, but increased purchases to exploit low prices on the global oil market. As a result, Chinese data today did not significantly affect the price of oil.

The announcement of another abundant soya harvest

Last night's soy market session ended with a big sale. The price of this grain in the USA fell by 3.4% after the data presented in his reports by the American Department of Agriculture (USDA).

The Department stated that 1 December Soybean stocks in the U.S. are at record level 11,203,000,000 The bush. This was the result of the abundant harvest of this grain in the United States – these were corrected even upwards in yesterday's report.

At the same time, USDA has raised soy production forecasts in Brazil to record levels 95,500,000 The harvest in South America will begin in the current quarter, and the announcement of the large harvest further pushed the price of soy down.

This morning, however, there is a delicate improvement in the mood in this market. Soybean price remains stable around yesterday's minima, slightly recovering losses. This may be the result of information about the record soya imports to China in December, which appeared tonight. Nevertheless, information from China will not have as large a translation into soya prices as in South America.

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