Overview of the oil market for 26.01.10

Dynamics
Quotes of the oil market Tuesday, January 26 and results of the auctions closed with a decrease in value against the backdrop of tightening monetary conditions in China and the anticipated increase in U.S. stockpiles of crude oil and petroleum products, and also because of the negative dynamics of the stock pads.

At the New York Stock Exchange NYMEH the March futures price of U.S. crude fell by 0.55, or 0.7%, and its price was 74.71 dollars per barrel.

The exchange ICE in London, Brent crude futures price fell 0.40, or 0.5%, to 73.29 dollars per barrel.

Causes
Tuesday, January 26 quotes on the market of "black gold" closed with a decrease in price under the following factors: 1 - economic news - talk of tightening monetary conditions in China suggest the market participants to think about how to be curl monetary and fiscal stimulus packages in the world economy, so investors are concerned that the uneven economic recovery may limit the growth in demand for oil, 2 - the fall of the stock sites, where the blue chips on Wall Street suffered losses despite a strong record of U.S. consume1000r confidence, as well as a report of Apple and other news of corporate character on the eve of Fed decision on rates (Dow Jones industrial average - 10194.29 (-2.57, or -0.03%), Nasdaq Composite - 2203.73 (-7.07, or -0.32%) SP 500 - 1092.17 (-4.61 or -0.42%)), 3 - slight strengthening of the dollar in the foreign exchange market, FOREX, which exerted downward pressure on the oil market; 4 - economic data - the American Petroleum Institute (API) on Tuesday reported that he estimated oil reserves rose by 2.23 million barrels, gasoline inventories - at 0.916 million barrels, distillate stocks fell by 1.98 million barrels, while busy refining capacity increased by 0.3 percentage points to 77,6%.

From news worth noting that the Iraqi Oil Ministry has signed a definitive agreement with the state oil company Sonangol to develop Angola"s oil fields Kayara and Najma. Kayary reserves estimated at 800 million barrels, and Najm - 900 million company has made its goal to boost production from the field Kayara to 120 thousand barrels per day, but on the field Najma - up to 110 thousand barrels per day. Sonangol is planning to invest $ 2 billion in development Kayary. Last year, Iraq has held two rounds of bidding for the right to develop oil fields, hoping with the help of foreign oil companies to increase oil production to 12 million barrels per day from 2.5 million and become one of the world"s leading mining, along with Russia and Saudi Arabia.

What to expect?
The main event of today"s trading session is out of data on stocks of petroleum and petroleum products from the U.S. Department of Energy, which can set the future direction trading. Market participants expect to reduce stockpiles of distillates, but at the same time, expect growth stocks of gasoline and crude oil. Among distillates include heating oil and diesel fuel.

Why worry?
The main negative factors in the oil market are U.S. dollar and the technical picture, namely, the psychological and technical level of $ 80 per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the open long positions.

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