In the analytical department of the company TeleTrade note that the price of oil brand West Texas Intermediate retreated from three-week high on increased production in Iraq and the continuing tense relations between Russia and the West. Prices for Brent crude oil are about 14 – day high amid lingering supply disruptions from Libya.
U.S. Secretary of State John Kerry on Sunday held talks with Russian Foreign Minister Sergei Lavrov on the situation in Ukraine. Kerry said that the resolution of the crisis depends on the withdrawal of Russian troops from the Ukrainian border . After joining the Russian Crimean Peninsula Western countries began to discuss tougher sanctions against Moscow , including sanctions in the oil and gas industry.
“Increasing oil production has no negative impact on the market because investors are willing to buy at lower prices , mainly due to the crisis of the Crimea. Margin on risk persists “- said analyst OptionsXpress in Sydney Ben Le Brun .
From the beginning, Brent fell by 2.5 per cent due to an increase in oil production in Iraq and exports from Iran, and the price will drop in the first quarter for the first time in the last three quarters . Iraq announced the start of production at the giant West Qurna – 2, which brings it closer to the goal to produce 4 million barrels per day.
American standard in the first quarter will rise by about 3 percent , as new pipelines helped relieve crowded distribution center in Cushing , Oklahoma.
May futures for U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 101.01 a barrel on the New York Mercantile Exchange (NYMEX). May futures price for North Sea Brent crude oil mixture fell $ 0.25 to $ 107.81 a barrel on the London exchange ICE Futures Europe.