Today almost all commodities show growth. Oil is trading around peak prices and is gaining momentum on the background of data showing US crude oil inventories have decreased in volume much more than the expected and constituted -11.2 million barrels per week. Moreover, the bad weather and cold on the East Coast in the United States is leading an increase in the demand for black gold.
In addition to weather factors, the situation in Iran is also putting pressure on the formation of prices, prompting some concern among investors about the reliability of energy supplies from the region.
Thus, the growth rates from the beginning of the year amounted to 3.5% for the Brent and 5% for the WTI brand.
In addition, the Energy Information Administration (EIA) published a forecast that shows an increase is expected in the demand for oil in 2018 to 100,000 barrels per day.
Nevertheless, we currently find the oil at the psychological mark of $70 per barrel. We should also note that an increase in the US oil production growth is expected in 2018 to a volume of 10.3 million barrels per day, while the record growth in the US production was achieved in 1970 and amounted to 10.4 million barrels per day. By 2019 production is likely to amount to 10.8 million barrels per day, according to the EIA forecast.
Another factor weakening price growth is the prevalence of open positions on the hedge funds buying, who would be looking to lock in profits soon.
