Brent oil price continues plunging today. The price of the Brent oil for March delivery has decreased to 49 dollars on ICE Futures London Exchange. This is a clear signal that Saudi Arabia does not intend to take any measures to regulate the balance on the oil market.
Khalid Al-Falih the CEO of Saudi Arabian Oil Co. (Aramco) has made a statement that even if the oil prices go down completely, Saudi Arabia will not intervene. The market is controlled by the economic rules of supply and demand and Saudi Arabia will not seek to to influence the price on its own. It is the matter of OPEC, as a whole, whether the oil prices will improve. However it is quite clear that even in OPEC Saudi Arabia has the upper hand.
This Wednesday the attention of the market leaders has been drawn to the US oil reserves. According to Bloomberg the US oil reserves have increased by 3,85 millions of barrels this week, reaching 401,7 millions of barrels in total. It means that the US oil reserves have reached its record amount, since 1982, when the US Department of Energy started monitoring this data.