Over the past two days, oil quotes were able to not only retreat from the educated lows, but gained more than $1 in weight. The main reason for the rise of oil prices was news about military conflict in Libya, which led to a sharp decline crude oil production from 700 thousand barrel to 560 thousand.
Any reduction of supply in the market allows prices for black gold to strengthen its position. But necessary to understand that is a Force Majeure, which is a temporality. Once the issue is resolved, volumes of oil production can not only return, but also grow to the planned 800 thousand barrel.
Shale oil industry continues to prove its stability and permanence. Baker Hughes again reported on the increase in the number of active drilling rigs in the US, which amounts now 652 units. The American Petroleum Institute showed an increase oil reserves in US storages by 1.9 million barrels. If Energy Information Administration confirms today this data, further advance of oil quotes to the north will be delayed.
In addition, the US dollar also restored some lost positions. The US Dollar Index has closely approached the level of 100 basis points and with the support of positive statistics in the coming days is able to strengthen even more, which will put some pressure on oil prices.