Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Saturday, 23 June 17:14 (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.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Saudi Arabia Raises Oil Prices for Asian and European Buyers

Saudi Arabia is reported to have raised oil prices for Asian and European importers. This is confirmed by Bloomberg.

Publication date: 09 June 10:26 PM

Market Players Play Oil Price Guessing Games

The international market of crude oil seems to be in panic. Yet, the panic is snowballing. The reason for that is said to be the statement made by Russian Energy Minister Alexander Novak about the possibility of easing the OPEC+ deal in June 2018, which came as a surprise to the international trading community.

 
Publication date: 29 May 01:41 PM

USA Outpaces Russia to Become World’s Biggest Oil Producer

In March 2018, the United States outpaced Russia in terms of oil production. This means that the USA is now the biggest producer of crude oil in the world.

Publication date: 24 May 11:26 AM

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast

On Thursday, May 17th, Brent oil exceeded $80/b for the first time in 3,5 years. The last time the price reached this level was on November 25th, 2014.

Publication date: 17 May 11:20 AM

Oil Prices At $79/b, Russian Ruble Still Weak. Why?

On Tuesday, May 15th, Brent oil reached $79/b. Strange as it may seem, the Russian Ruble hasn’t reacted to this so far, even though this always has been a positive sign for Russia’s national economy and currency heavily reliant on crude oil prices. Moreover, the currency has been going slightly down for a while despite being backed by higher oil prices.

Publication date: 15 May 01:19 PM

Russia Isn’t Interested In OPEC+ Anymore

Right in advanced of the forthcoming OPEC+ summit some experts doubt that Russia is still interested in the agreement. The strategic objectives of the OPEC+ deal are almost reached. The imbalance in the global oil market has almost been eliminated. The cost of a barrel of Brent oil has increased by more than 100% since late 2016. At this point Brent oil is trading above 70 dollars per barrel. On Q1 2018, the OPEC made 400 million dollars a day more than 12 months before.

Publication date: 28 April 07:57 AM

Who Loses and Wins from Oil Prices At $70/b?

High oil prices have two sides of one coin. On the one hand, while oil producers are  benefiting from today’s oil prices over $70/b, this seems to be  creating an extra pain for oil consumers worldwide. What exactly has been happening to oil-producing economies?

Publication date: 28 April 06:10 AM

American Oil Export to Europe Quadruples Thanks to OPEC+

As predicted by many experts, the OPEC+ agreement has been favoring American shale oil producers. The export of American oil to Europe has quadrupled. The thing is that the agreement between the OPEC and Russia-led non-OPEC oil producers pushed oil prices high enough to make American shale oil production profitable again.

Publication date: 26 April 05:26 AM

Russian Oil Production Is About To Peak and Start Declining in the Near Future

According to Finanz, with reference to the International Energy Agency, Russia has been benefitting from its oil production and export for decades. However, this is about to change in the future since the Russian oil industry is about to see its production peak, which means it will inevitably start going down further down the road.

Publication date: 16 April 05:31 AM

US-China Trade War Drops Oil Prices

The trade war between the United States and China is underway. Yet, it has already led to some consequences. For example, international experts say that this war has been the reason for the current weakness of the global market of cryptocurrencies. At the same times, Finanz experts claim that this trade war has dropped oil prices.

Publication date: 06 April 01:09 PM