Oil prices drop slightly

Global oil prices on March 12 morning fell moderately after rising by almost 2.5 percent on March 11, while prices remain close to last year’s record, according to trading data, Report informs referring to Prime agency.

As of 9:03 (GMT +4) the price of May futures for North Sea Brent oil blend decreased by 0.11 percent, to $69.55, April futures for WTI oil dropped by 0.23 percent to $65.87 per barrel. The indicator remains at its maximum level since the beginning of January 2020, and on March 11, prices rose by 2.5 percent.

On March 11, oil rose in price on the risk sentiment and expectations of economic recovery, which should support oil demand. Optimism is associated with the ongoing vaccination against coronavirus and measures of ‘support’ by the global authorities and regulators.

In particular, US President Joe Biden signed a $1.9 trillion stimulus package on March 11, including direct payments to the majority of taxpayers in the amount of $1,400. In addition, the European Central Bank (ECB) on March 11 kept the base interest rate at a record low zero and left unchanged the parameters of the Pandemic Emergency Purchase Program (PEPP).

In addition, at the beginning of the month, in its March report, OPEC raised its forecast for growth in global oil demand this year by 5.9 million barrels, to 96.3 million barrels per day.

Later on March 12, US oil and gas services company Baker Hughes Company will release statistics on the number of operating oil rigs in the US. During the previous working week, which ended on March 5, their number increased by one, to 310 units.