Last Monday, the price of oil has experienced a fall, said the sources. The fall in the price was there all over the Christmas season. Also the newly gained premium has been defended by the US crude, added the sources. The new premium was gained over the Brent, which was traded internationally. The Brent trading at the end of the year has brought this change, said the report on last Monday. The fall in price will not be a permanent one and the oil price will raise again in the New Year, said the sources.
Oil price has faced a 23c fall
According to the report, a barrel of oil was sold at a price of $37.87 in the starting of December this year. The price has not faced any changes since. But at the end of the month, the oil barrel price has faced a change. The price of oil has fallen and the sources told that the price of oil has faced a fall of 23 cents at the end of the month. The report has also added that the Brent has also experienced a fall in the Oil price this year end.
According to the report, the fall in the price of oil barrel at the Brent was 16 cents, which is quite lesser than the West Texas Intermediate. The Brent was defended by the US crude, said the sources. The Brent has got a global benchmark in the last week. The price of per Oil barrel in Brent was $37.73, said the report. The marketers have told clearly that this change in the price will not last long and soon when the year 2016 starts, there will be so much of changes in the world economy, which will definitely reflect in the oil barrel price also.
Trading volumes were also down these holidays
The report has told that, over the holiday period, the trading volume has faced a fall too. It was only 5000 West Texas Intermediate Contracts that have been hand changed over trading session on this Monday. But by last December 7, the total contracts that have been changed over the hands are 8,953. The US market has faced a slight tightening this December said the sources. And that is the possible way that has made chances for the fall in the price of oil barrel.
“The biggest adjustment to prices comes from WTI gaining premium over the Brent. This was mainly followed by the US lifting its ban on crude oil exports,” Singapore-based Phillip Futures said on Monday. The brokerage added that it expected “a quiet week ahead” with the biggest expected news for energy markets likely coming from US inventory data to be published on Wednesday and Thursday. While the US slightly tightened, international markets remain over supplied as producers like Russia and the Organization of the Petroleum Exporting Countries (OPEC) produce between half a million and 2-million barrels of crude every day in excess of demand. To know more on this, please follow us at https://twitter.com/financetradingn