Moscow. May 21. Kazakhstan Today - Quotations of basic grades of oil following the results of the tender on Monday continued to grow, the agency reports referring to daily review of the group of companies OMT-Consult on Tuesday.
July contract of North Sea oil of Brent on London exchange InterContinental Exchange increased in price by $0.07 - to $125.06 for a barrel. Futures contract on Texas light oil of WTI with delivery in June on New York commodity exchange NYMEX grew in price by $0.76 - to $127.05 for a barrel.
"The main reason that made quotations of basic grades of oil go upwards, was forecasts about increase of consumption of oil products in China," the report states. According to the source, in connection with the recent earthquake a few hydroelectric power stations were damaged and many roads have been destroyed in the country. In this connection, China decided to increase production of electric power using diesel generators and more active exploitation of aero technology.
Growth of quotations was caused by doubts of market actors concerning decision of Saudi Arabia to increase oil extraction, the analysts consider. In connection with growth of demand and fading of tension in the market due to high oil prices Saudi Arabia plans, at the request of the US President, from June, 2008, to increase oil extraction by 300 thousands barrels a day, or up to 9.45 million barrels. However, in the opinion of OPEC members, this decision will not influence oil market, as oil price does not depend on volumes of its production.
According to the experts' forecast, as of now, it is difficult to predict how high oil prices will be in the near future. "Presently oil market is not transparent and gives vague pictures of demand and supply, which help to form forecasts for the future. The situation is worsened by the fact that China is the least transparent state and consumption of oil in this country grows quickly," the review of oil market explains.
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