18 Sep 2019 11:34

VIEWPOINT: Saudi statements return oil prices to $60-$65/barrel range - Promsvyazbank

MOSCOW. Sept 18 (Interfax) - Statements by Saudi Arabia on the country's readiness to restore its production capacities by the end of the month and comply with its oil delivery contract obligations have led to a reduction in nervousness in the oil market and a sharp decline in prices, with Brent crude prices swinging down sharply in the range of $60-$65/barrel, Promsvyazbank said in a report.

"Data from the American Petroleum Institute (API), which indicate an unexpected growth in crude oil inventory (592,000 barrels; it was expected, according to a Reuters consensus forecast, that inventories would decline by 2.5 million barrels) also don't give cause for purchases," Promsvyazbank analyst Yevgeny Loktyukhov said. "The removal of the majority of the geopolitical premium allows us to expect Brent crude to trade at $65/barrel. The attention of market participants will be trained on the publication of energy market data by the U.S. Department of Energy," he said.

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