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Oil has fallen by more than 5%

Oil has fallen by more than 5%

After the publication of the U.S. Department of Energy weekly report, the oil prices have fallen by more than 5% during today’s trading session. According to the report, crude oil inventories in the USA rose by 8.2 million barrels from last week, bringing the total number of stocks reach a historical high and amounted 528,4 million barrels.

Over the past three months, oil prices fluctuated in a narrow range around $55 per barrel. This was facilitated by the variables market sentiment according to the news of oil inventories increase in the United States and the reduction of “black gold” production under the OPEC agreement. The current oil prices drop came as a surprise to investors and dealt a severe blow to the stability of oil-dependent currencies.

Also, a meeting of energy ministers of the OPEC and non-community exporting countries was held in Houston today. During the meeting all participants confirmed their intention to continue oil production cut in order to restore a balance in the market. At the next meeting, which will be held in Kuwait on March 26, these obligations will be assessed.