Rus News Journal

The USA have brought down the prices for oil

Yesterday again the prices for oil in the world markets have fallen off. Preparing for the beginning of operations, the USA have sharply increased own stocks of fuel to avoid losses from - for sharp jumps of the prices.

yesterday the prices for oil in the world markets have fallen to record-breaking low level since August, 1999. In the USA quotations of November futures on crude oil have fallen on Tuesday to 2,5 % to a mark in $22,21 for barrel. Then falling has proceeded in the Asian markets where oil also has fallen in price more than on 2 %. On Wednesday oil of grade Brent has fallen in price and at the international oil stock exchange in London. The Russian oil also has lost in the price. Oil Urals has fallen below $19 for barrel, and Siberian Light below $20. It is already close to the floor prices put in the Russian budget for 2001. And if falling of the prices for oil in the world markets proceeds, the government of Russia should cut down sharply expenses.
One of the main reasons of catastrophic falling of the prices of a steel of the statement of representatives of analytical company American Petroleum Institute. According to the data published on Tuesday, stocks of oil products in storehouses of the USA and the largest oil companies have grown last week more than on 1 % in comparison with the previous. It is a record indicator of week growth of stocks since July of current year. And analysts are convinced that such news are capable to lower for a long time demand for oil all over the world.
However, last week the OPEC management has declared that the organisation can make the decision on oil extracting reduction, if of the price for oil from OPEC baskets will not return to a range of $22 - 28 for barrel. But the countries - exporters are not ready yet to resolute actions. In particular, the minister of petroleum industry of Kuwait Adele al - Subej (Adel Al - Subeih) has declared that the OPEC it is not necessary to reduce oil extracting in a present situation even if the prices will remain at level below $22. On Monday the price an oil basket which consists of seven grades of the oil extracted by member countries of the OPEC, has fallen to $20,44. By rules of the OPEC of a quota on oil extracting should be reduced by 500 thousand barrels a day, if the price baskets remains below $22 within ten working days on end. This term expires on Thursday.
and today, most likely, members of the OPEC will begin consultations on this question. But OPEC possibilities on maintenance of the prices in a present situation are extremely limited by beginning economic recession in the majority of the countries - fuel consumers.