In the period from may 21 to may 27, 2016 global oil prices continued to rise due to the ongoing limitation of production in Nigeria, Canada, Libya, Venezuela, Colombia, but the pace of price growth have begun to decline. As a result, the WTI rose to $50,21, and the price of Brent tested the level of $50,95.
The spread between grades of oil as of may 26, 2016, has narrowed to just $0.11 in connection with the shortage of oil supply in the North American market. Mid-week, WTI was even more expensive Brent crude. The ratio of the spread to the price of WTI decreased to 0.2%.
After reaching $50, oil prices retreated to end the week on profit taking before the long weekend, we will have in the USA. In addition, the market is waiting for the speech of fed Chairman John Kerry. Yellen, who may confirm that the interest rate will be increased in the near future. The market is growing confidence in the rate increase during the June-September meetings, which contributes to lower prices for raw materials due to the strengthening of the dollar.
Next week will be marked by the OPEC meeting, which will take place in Vienna June 2, 2016 From the meeting, no significant solutions because of this shortage of supply has abolished the need to reach agreement on controlling the production. OPEC also is experiencing a structural crisis, which can lead to a change of its President.
the <em>Oksana Lukicheva, analyst of commodity markets "Opening Broker"</em>