The oil prices drop on news of USA and Venezuela

Нефть дешевеет на новостях из США и Венесуэлы

Brent crude in London fell $0,86, and the price of WTI in new York fell $0,80.

World oil prices reference marks are reduced amid easing tensions around Venezuela and the increasing number of drilling rigs operating in the United States. This according to the auction the morning of Monday, January 28.

So, the price of the March futures on North sea Brent crude on London’s ICE Futures exchange at 09:00 on Kiev fell to $0,86 (1,40%) to $60,73 per barrel.

In turn, the cost of WTI crude oil for March delivery in electronic trading on the new York Mercantile exchange (NYMEX) decreased by $0,80 (1,49%) – to $52,89 per barrel.

As Interfax reported with reference to the report oilfield services company Baker Hughes, the number of operational oil installations in the U.S. last week increased by 10 units, up to 862 units. The rise rate is fixed for the first time since the beginning of the year and signals further growth of oil production in America.

Meanwhile, the Venezuelan government reversed its decision to sever diplomatic ties with the US, which somewhat calmed investors. The political crisis in Venezuela has had a moderate upward pressures on oil prices due to fears of reduction of fuel supplies from the country to the world market.

“In the coming weeks, the oil rig count in the United States can continue to grow amid rising oil prices, – the analyst of the commodity market, Rakuten Securities Satoru Yoshida. – Overall market has digested recent news from Venezuela, but prices could rise if tensions intensify”.