Oil quotes Wednesday afternoon continue to grow. London Brent (June contracts) traded above $ 46.6 per barrel for WTI with delivery in June, offering $ 44.7 per barrel. Supporting quotes the World Bank had forecast positive statistics from the American Petroleum Institute, the problems in Venezuela and the US Federal Reserve meeting
The World Bank raised its base forecast for oil prices this year due to the weakening dollar and improved market conditions. Now, with a target price of $ 41 per barrel instead of $ 37. A real improvement in the world economy and the oil market too early to say, but the latest statistics pleases investors. Thus, according to the American Petroleum Institute, the commercial crude oil inventories in the US for the previous week declined by 1.07 million barrels, which was an additional factor for the rise in prices on Tuesday.
Today completed a two-day meeting of the US Federal Reserve. The rate will most likely remain unchanged, and the rhetoric of the Fed will be soft. Specificity of the US monetary authorities should not wait, will only vague hints of a possible rate increase in the future. Indecision will spur the Fed to further fall in the dollar and give strength to oil "bulls". The chances of achieving the level of a barrel of oil at $ 50 increase.
In Venezuela, continuing drought, which forced local authorities and the population of the country to move to a shortened work week in order to save electricity, the lack of which has arisen due to the decrease of the water level in the main reservoir of the country where the largest hydroelectric power station. In these circumstances, Venezuela is unlikely to be able to maintain the previous level of production (2.8 million barrels per day).
During the day, oil prices continue to rise. By the end of the week, Brent crude oil could rise above $ 47.5 per barrel and WTI - up to $ 46 per barrel.