The price of oil is down Thursday after the release of US oil reserve statistics and news from Iran. A barrel of North Sea Brent is selling now for $50.08 (-0.8%) WTI futures with October delivery are trading around $46.02 (-0.5%).
Yesterday the data from the EIA came out: last week’s oil reserves grew by 4.667 million barrels against a forecasted 0.03 million rise. Earlier the reserves were growing by 5.452 million barrels and observers of this supposed that we would see a technical correction. It turns out that oil supplies are still on the increase and this fact can only have consequences for the price of the commodity.
Iran is back on the agenda. As far as we can see, US congress is slowly but surely returning back to discussing lifting Iranian sanctions since Obama managed to get the minimum backing from senators in order to ratify the document lifting the sanctions. This means that March-April 2016 will see Iran back on world oil markets. However, the US must first have their internal discussion and find a solution before the end of September. In the short-term, this fact could make oil prices fall by up to 5%.
Brent is trading $48.70-50.25 today. A lot will depend on how the dollar goes after the ECB meeting in the second half of today.