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Thursday, 19 January 08:53 (GMT -05:00)



Stock and commodities markets

Oil Prices Get Ready For Another Plunge


Crude oil and the Russian Ruble have found themselves at 3-month lows. There are several reasons for that.  In particular, OPEC is reported to be producing record-high amounts of crude oil despite the recent verbal agreement to cap and even cut their production in the near future.
 

 

 

 

At the same time, the U.S. presidential election 2016 ended up with a big surprise, making Donald Trump the 45th President of the United States of America. Experts say that the new administration may well increase the export of crude oil produced in the USA. All of that is making the global market of crude oil oversold, thereby pushing oil prices lower amid increasing oversupply.
 
On Monday, crude oil spent the trading day trading in the red zone. To be more specific, Brent oil futures for January delivery dropped below $44/b on that day. Apparently, OPEC’s actually oil production increase has been the key bearish driver for oil prices since then. According to several sources, OPEC increased their oil production by as much as 230K barrels a day in October 2016.  The new record is 33,83 million barrels a day. OPEC names slightly lower figures, but the essence is the same.
 
At the same time, the very fact that the global production of crude oil is growing in advance of the forthcoming OPEC summit seems scary to many international observers and market participants. The thing is that in late September, during the unofficial summit in Algeria, OPEC nations agreed to cap the cartel’s oil production to 32,5-33 million barrels. Still, as we can see, the agreement doesn’t seem to be working. Observers start questioning the agreement. They say that the next summit is unlikely to end up with signing the agreement and making it official.

 

 

At the same time, BMI Research analysts also assume that OPEC is unlikely to sing the promised agreement during the forthcoming summit. They say the cartel is not going to do it after Donald Trump’s unexpected victory during the U.S. presidential elections. The thing is, Donald Trump is the advocate and supporter of the U.S. energy independence.
 

 

PIRA Energy Group experts also say that the market doesn’t trust OPEC’s statements about the forthcoming agreement anymore. In October, oil prices used to be around $55/b supported by the promises to cap the production and shrink the oversupply in the global oil market. Hover, now, the prices are well below $45/b for a number of reasons, including those we have just mentioned.

Masterforex-V Academy experts say that if OPEC eventually fails to sing the agreement, oil prices may well crash all the way down to $35/b and below.

 

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Economic Calendar by Dukascopy 18.01.2017

Thursday brings the latest ECB statement, so let's take a closer look with the Economic Calendar.
Swiss Producer Price Index for December is up first at 8:15 AM. The Index has been growing for the past 3 months.
The closely watched ECB Monetary Policy Statement is out at 12:45 PM GMT, and make sure you tune in for the press conference 45 minutes later. President Draghi is sure to face plenty of questions about the latest developments which could cause some volatility in the markets.

Publication date: 18 January 10:10 AM

Economic Calendar by Dukascopy 17.01.2017

Tuesday brings the latest update on UK inflation, so keep watching this Economic Calendar to find out more.
In fact, the highly anticipated British December CPI is the first item on the schedule, and it's released at 9:30 AM. The annual inflation picked up speed in November, rising to a 2 year high.

Publication date: 17 January 09:42 AM

Economic Calendar by Dukascopy 16.01.2017

It's time for another Dukascopy Economic Calendar. Here's a rundown of the most important news releases scheduled for Monday, the 16th of January.

US markets will be closed for the Martin Luther King day, and the first item on the schedule comes one minute past midnight when the UK Rightmove House Price Index for January is released.

Publication date: 16 January 06:00 AM

Clean Energy Gets Popular, IEA Reports

In 2015, the amount of energy produced the “green” way outnumbered the amount of energy produced from fossil fuels in terms of growth for the first time in history. This is confirmed by the recent report released by the International Energy Agency (IEA).
 
Publication date: 21 December 01:55 PM

In 2017, Oil Market May See Both Deficit and Oversupply

The contemporary global market of crude oil may well go from oversupply to seeing a deficit in 2017. This is what several respected experts working for the International Energy Agency thing on the matter. For starters, this scenario need a major trigger in the form of signing the promised oil production cap agreement reached verbally by OPEC members in late September in Algeria.

 

 
Publication date: 17 November 05:35 PM

Kudrin Says Oil Will Cost Under $30/b Over the Next 20 Years

Former Russian Minister of Finance Mikhail Kudrin says that crude oil is going to see the period of ultra-low prices over the next 20 years. One of the most influential and respected Russian financiers specifies that crude oil is not going to cost more than $30 per barrel in the future.
 
Publication date: 14 October 05:11 AM

OPEC's Oil Production Saw Record Highs In September 2016

According to the recent research conducted by Bloomberg, OPEC’s oil production reached a new high in September 2016. To be more specific, OPEC is reported to have been producing 33,75 million barrels a day over the reporting period.
 
The record high production of crude oil within the scope of cartel has to do with considerable production growth seen in Libya and Nigeria over the reporting period. For those of you who don’t know, the similar data taken for the previous month report 33,24 barrels a day, which means that OPEC’s oil production increased by as much as 170 thousand barrels a day in a matter of 4 weeks.
Publication date: 07 October 11:34 AM

OPEC Cuts Oil Production, Oil Prices Go Up

Despite all the skepticism around yesterday’s unofficial OPEC summit, the members of the cartel did finally manage to agree on production cuts for the benefit of higher oil prices as well as a more stable and stronger market of crude oil. Apparently, the breaking news instantly sent oil prices higher all around the globe.

 

 
Publication date: 29 September 04:30 AM

Samsung Loses $22 Billion of Market Cap in 2 Days

Samsung, the world-famous manufacturer of computer electronics from South Korea, saw its market capitalization shrink by as much as over 22 billion dollars in a matter of just 2 trading days. This happened amid a scandal with the new smartphone named Samsung Galaxy Note 7, Masterforex-V Academy reports.

Publication date: 13 September 05:29 AM

OPEC Wants Higher Oil Prices

According to the Algerian Minister of Oil, the oil prices around $50/b are unacceptable. During his visit to Iran. The minister told that oil prices should be at least between $50 and $60 per barrel. This statement was made during the discussion of the existing situation in the global market of crude oil as well as the ways and means to coordinate OPEC’s efforts to make the prices go higher, Market Leader reports.

Publication date: 08 September 12:40 PM