During electronic trading on the London and new York stock exchanges global oil prices fall.
April futures for light WTI oil on the new York Mercantile exchange (NYMEX) declined 1.19% to $37,45 per barrel. On London’s ICE Futures exchange the futures for oil of mark Brent with delivery in may fell by 1.52% to $40,22 per barrel.
On the eve of the barrel of oil Brent for the first time since the beginning of the year rose to $41. The last time the “black gold” of the reference grade was reached in December 2015.
According to experts, the rising oil price is associated with a reduction in the number of working drilling rigs in the US (the number for January has decreased by 60 units and amounted to 654), and also with a fall in the production of American crude oil producers to its lowest level since November 2014. In addition, in mid-February Saudi Arabia, Russia, Qatar and Venezuela have agreed to freeze production at the level of January 2016 to hold world oil prices from further decline.
As you know, the price of Brent is used to calculate the price for Russian oil Urals. The Russian budget for 2016 based on the estimation of the average annual value of $50 per barrel.