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Monday, 23 October 19:48 (GMT -05:00)



Stock and commodities markets

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.

 

 

 

 
To be more specific, the expected agreement is intended to cap OPEC’s crude oil production at the level of 33 million barrels a day. This is what the IEA experts say in their November report.  The thing is that this is now the only hope for oil nations to get oil prices going higher and allowing them to make bigger profits from their oil exports. If OPEC fails to sing the long-awaited agreement, we are likely to see oil prices go further down on even higher overproduction and oversupply around the globe. In this case, there cannot be any change to see a price rally in the oil market in 2017.
 
At the same time, OPEC reports that the global production of crude oil increased by 800K barrels a day in October 2016 alone. Even though some non-OPEC oil producers actually cut their oil production, OPEC is still covering this production cuts and making the global production go up. The IEA reports that OPEC produced 33,8 million barrels a day in October, which is a new record high. On top of that, despite constantly talking about the necessity to cap and even cut their oil production quotas, OPEC members have actually been increasing the production. This has been going on for 5 months in a row.
 

 

To be more specific, the IEA is currently witnessing higher oil production in Libya, Nigeria, and of course Iraq (some 4,6 million barrels a day), not to mentioned Iran. Anyway, whatever the result of the forthcoming OPEC summit is going to be, this is definitely going to be the decisive event for the near-term future of the entire international market of crude oil. That’s for sure! The OPEC summit is planned for November 30th, 2016.

 

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U.S. Oil Demand Drops Oil Prices

Oil prices are now going down again after rallying close to 60 dollars per barrels. Again, the prices failed to touch the $60 threshold. Brent oil lost 2,5% in 24 hours. NordFX reports that Brent futures for December delivery were trading around $58,53/b on Wednesday. On Thursday, the price dropped down to $57,03/b, which was the lowest price level since the end of the previous trading week. WTI oil went down in price as well. On Thursday, the price dropped down to 51,74 per barrel.

Publication date: 23 October 03:25 AM

No More Expensive Oil

Many oil-exporting nations have been joining efforts to push oil prices higher. Still, some experts believe that they shouldn’t count on higher oil prices since this is not going to happen.

Publication date: 23 October 02:53 AM

OPEC Urges American Shale Oil Producers to Join Oil Agreement

The OPEC is reported to have offered American shale oil companies to join the Vienna Accord, also known as the OPEC+, which is the agreement designed to cap the production of crude oil and restore the market balance for the sake of higher oil prices in the future. However, some experts say that they won’t agree to do so even if they are threatened.

Publication date: 13 October 05:14 AM

October Starts With Crude Oil Downtrend

Friday’s trading session made crude oil go in the red zone. According to Masterforex-V Academy experts, the USA started increasing the production and export of crude oil, and the international trading community has been concerned about that ever since, which is, by the way, is believed to be the key reason for this price drop.

 
Publication date: 08 October 09:30 PM

Russia and Saudi Arabia Want to Extend OPEC Deal for 3 Months

Russia and Saudi Arabia insist on extending the OPEC deal for another 3 months – up to middle 2018.

Publication date: 29 August 03:56 AM

S&P 500 Becomes Most Profitable Assets Since 2008 Financial Crisis

Deutsche Bank analysts have complied the list of the most profitable financial assets over the last 10 years. S&P 500 is recognized the best asset for long-term investments. Those who have been investing in this asset since 2007, now can enjoy slightly over 100% on top of their investments, the experts report. American junk bonds yield to S&P 500 in terms of profitability. As of the Russian stock market, it’s one of the outsiders.

 

 

 

Publication date: 21 August 04:58 AM

Dow Jones Industrial Average Set New All-Time Record, Above 22K Points

The Dow Jones Industrial Average (DJIA) is reported to have set a new all-time record. For the first time in its history, the index has exceeded the 22K threshold.

 

 
For those of you who don’t know, the Dow Jones Industrial Average is one of the oldest and most significant indexes indicating the health of the American stock market. It was created by Charles Dow and Edward Jones. In 1889, Mr. Dow founded The Wall Street Journal, one of America’s first business editions. In 1896, The WSJ published the DJIA for the first time when analyzing the current state of the U.S. stock market for the first time. Back then, the DJIA was at 40,94 points, NordFX experts report.
Publication date: 04 August 06:09 AM

OPEC Increases Oil Production To Highest Volume Since Early 2017

The OPEC’s average daily level of oil production saw another high in June 2017. To be more specific, they produced 260K barrels a day more than in May 2017. The biggest gainers in term of oil production were Libya and Nigeria. Those are the OPEC members that didn’t sign the so-called Vienna Accord, which is why they are not obliged to freeze their oil production.

Publication date: 05 July 12:31 AM

Why Are OPEC and Russia Unable to Trigger Oil Price Rally?

Not so long ago, oil prices reached the 10-month low. Since early 2017, oil prices have already dropped by 20%. The low efficiency of the joint efforts to cap oil production in order to support oil prices is now rated differently by the international expert community.
 
Publication date: 01 July 12:57 PM

Crude Oil Plunges Below $45/b

Oil prices keep on going down. Yesterday, for the first time since November 2016, the price of Brent oil dropped below $45/b. to be more specific, later on the trading day, a barrel of Brent oil cost $44,63 in London (ICE Futures). This means that the price dropped by 3% over the trading day. A day before, the trading session ended up with $46,02/b, NordFX reports. This is the lowest price since November 15, 2016.

 

 
Publication date: 21 June 11:36 PM