Oil near the lowest price in 11 years due to oversupply and the rise of the dollar

December 19 2015

Oil prices fell to near the lowest level in 11 years yesterday, and the worsening of the decline due to increase Oversupply and rising dollar after the Federal Reserve to raise interest rates the US House for the first time in about 10 years. Crude fell «Brent» Delivery Feb. 20 cents to $ 37.19 a barrel after the World Brent crude fell 3.3 percent in the previous session. If crude fell below $ 36.20 a barrel, it will be at its lowest level since July 2004.

Government data showed an unexpected rise in US stocks yesterday adds to the glut in the global markets that helped crude prices fell about 17 percent this month alone. It fell «Brent» of more than $ 115 a barrel in June 2014. The price fell WTI January delivery (January) 33 cents to $ 35.19 a barrel after yesterday's trading ended on the decline by about five percent.

In Saudi Arabia, rebounds and the Ministry of Petroleum and Mineral Resources has succeeded with a number of security agencies and competent, in thwarting one of the largest diesel smuggling operations, with monitoring movement of about 450 tankers loaded with nine million liters of diesel, after processing in a number of locations in Riyadh and the Eastern Province, and heading to port King Abdulaziz in Dammam, fell in the grip of customs at the port. According to a ministry statement, this process is the largest attempt to smuggle diesel from the outset in the application of screening procedures using fuel discrimination marker technique.

Qatar expects to reach its budget deficit for 2016, 46.5 billion riyals (12.77 billion dollars), with lower revenues in light of falling oil and gas prices. According to the 2016 budget revenues will amount to 156 billion riyals, compared with 226 billion this year. The new budget calculated based on the price of $ 48 per barrel of oil, which is higher than the price of oil in the world market currently. The agency «Qena» official that the total expenditure in the budget of 2016 of 202.5 billion riyals, compared to 218.4 billion in 2015. It quoted Finance Minister Ali Shareef Al Emadi said Qatar plans to make cuts in the doors of current expenditures and capital expenditures, with increased spending in the area of ​​projects the main worth 3.3 billion riyals.

Signed Israeli Prime Minister Benjamin Netanyahu gives final approval of an agreement to develop a natural gas field «to Afallathan» actually off the coast of Israel, after years of political debate. Despite sharp criticism from opponents say that one group will control the largest gas reservoir, including an Israeli would limit competition, Netanyahu decided to go ahead with the agreement, which he described as significant Israeli national security. As part of the agreement «Noble Energy» by Texas-based group «Delek» Israeli who found out in the field in 2010 but retains control of it would have to sell them other small assets.