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Wednesday, 24 May 05:22 (GMT -05:00)



Stock and commodities markets

Brent Oil Prices Will Average $53,50/b In 2017, IEA Says


This year, the average cost of Brent oil is expected to be at $53,5 per barrel. This is what the latest EIA report says. This means that the forecast has improved relative to the previous one. For the sake of comparison, the average price of Brent oil in 2016 was at $43,74 per barrel. In 2018, the average price is expected to exceed $56 per barrel.

 

 

 

 

 

As for WTI oil, the EIA reports expects the average WTI price to be around $52,5/b in 2017. This is higher than $50,66/b expected in December 2016. For the sake of comparison, the average price of Brent oil in 2016 was at $43,33 per barrel.

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Also, the agency improved the forecast for the average oil production in the USA by as much as 200K barrels a day up to 9 million barrels a day in 2017. Moreover, the EIA expects the U.S. oil production ton increase all the way up to 9,3 million barrels in 2018.
 
More optimistic forecasts have to do with higher oil production in the Mexican Gulf. It’s all about higher production capacity partially resulting from more efficient drilling.
 

 

At the same time, Goldman Sachs experts anticipate $59/b for Brent oil in mid 2017 thanks to the Vienna Accord implying production cuts by OPEC and non-OPEC oil producers. Still, the experts don’t believe the prices will stay there for more than 6 months. The Vienna Accord signed in late 2016 is expected to result in a supply deficit in Q1 2017, thereby pushing the prices higher.

 

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Vienna Accord May Be Extended by 9 Months

During the recent press conference, Saudi Arabian Minister of Energy, Industry, and Mineral Resources Khalid A. Al-Falih told the reporters that the OPEC and non-OPEC oil producers are now actively discussing the possibility of extending the so-called Vienna Accord until March 2018, with the same quota of 1,8 million barrels a day.

Publication date: 15 May 11:01 AM

Morgan Stanley Reveals New OPEC Tactics

It looks like OPEC members declared a hybrid war on their rivals in the global oil market. The say something but do the opposite. This is what Morgan Stanley experts think on the matter.

 

 
For instance, previously the OPEC announced oil production cuts a number of times. On the one hand, there are no reasons to question their announcements. Maybe at times they do cut their oil production. On the other hand, their oil delivery is still the same. This means that despite all the promises and expectations, the international market of crude oil keeps seeing the same oversupply, which in its turn keeps on capping oil prices. Morgan Stanley experts assume that OPEC members are selling out their oil inventories. Indeed, if the inventories are full, why not benefit from this and manipulate rivals with higher oil production costs. The OPEC announces production cuts, everyone waits for oil prices to rally but nothing considerable actually happens.
Publication date: 09 May 10:50 PM

Crude Oil at $30/b Again?

The unexpected crash in the global market of crude oil seen over the last few days has made the international community worried about the future of crude oil. Now, traders and investors are not the only ones worried. Financiers, economists, bankers, officials and many others are concerned about this since their financial well-being also depends on crude oil prices.

Publication date: 05 May 09:48 AM

OPEC and Russia’s Failed Oil Production Cut Expectations

Hoping for higher oil prices, last year the OPEC and some oil nations outside the cartel decided to get united and unanimously cut their oil production. That was done to curb the overproduction and prevent oil prices from going further down. They believed that the prices would reverse and regain some of the lost ground. Even though the prices did really go slightly higher, the overall plan now seems to have failed since there have been no major gains since then. Now the prices are going down again and have already lunged below $50/b.

Publication date: 05 May 09:12 AM

Brent Oil Drops Below $47/b

On Friday morning, Brent oil saw its price crash all the way down to 47 dollars per barrel. To be more specific, we are talking about the Brent futures for July delivery. For now, the international expert community is trying to figure out what were the reasons for this price drop.

Publication date: 05 May 12:06 AM

Trading Signals by Dukascopy 15.02.2017

These are the Main Daily Trading Signals for Wednesday. Here's how the interbank compares with the technicals at 8 AM GMT.
Euro/Dollar sees 5 neutral models in the short-term, whereas the mid and long-term scales are overwhelmingly bearish. Neutral at 4% short, the interbank matches the 1-hour models.

Publication date: 15 February 03:35 AM

OPEC Revised 2017 Oil Demand Forecast

OPEC is reported to have just improved its revised forecast for the global oil demand for this year. To be more specific, the cartel expects the demand for crude oil to increase by 1.3% YoY all the way up to 95,6 million barrels a day. This is what January’s OPEC report indicates.
 

 

Experts say that the revised forecast resulted from higher oil demand coming from Europe due to cold weather forecasts and shortage of fuels for various kinds of transport.  To be more specific, the demand for OPEC oil is expected to increase all the way up to 32,1 million barrels a day. At the same time, the production of crude oil in non-OPEC nations is probably going to increase up to 57,3 million barrels a day, experts say.
Publication date: 18 January 10:34 AM

Will Russia Actually Cut Oil Production As Agreed?

For those of you who don’t know, OPEC as well as some non-OPEC nations, including Russia, are going to cut their oil production to favor higher oil prices as the result of shrinking the global supply of crude oil. It seems like this is the first cooperation between OPEC and non-OPEC nations since 2001.

 

 
Publication date: 16 January 08:56 AM

Crude Oil After Christmas Holidays

Saudi Aramco, Saudi Arabia’s national oil company, has recently announced higher export prices for all if its Asian importers. Experts say that this move has to do with the fact that the Saudis are getting ready to implement the production cuts according to the Vienna Accord reached by OPEC in December 2016.

 

 
Publication date: 09 January 03:18 AM

Oil Prices May Crash Down To $10/b, Experts Say

Over the next 5 years, the world may suffer from 5 “energy tsunamis”, which may trigger a major crash in the global market of crude oil. This is what Bloomberg says, with reference to Thierry Lepercq, Executive Vice President of Engie.
 

 

According to Mr. Lepercq, who is in charge of supervision of the Research & Technologies and of the Innovation at Engie, the international market of crude oil is going to feel increasing pressure coming from cheaper solar energy and other clean energy sources. At the same time, the growing amount of electrocars and “smart homes” as well as cheaper accumulators are going to make things even worse for crude oil, making it a less consumable commodity.
Publication date: 22 December 02:37 AM