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Tuesday, 27 June 07:39 (GMT -05:00)



Stock and commodities markets

Brent Oil Prices May Reach $65/b in Q4 2017, Citigroup Predicts


Despite the fact that American oil producers have become more active, the average price of Brent oil has all chances to reach 65 dollars per barrel in the last quarter of 2017, Citigroup experts predict.

 

 

 

 
According to the experts, the recent OPEC deal (aimed at reducing oil production and supported by several non-OPEC producers) may well be extended and therefore may become the very factor backing oil prices despite the increasing shale oil production in the United States.
 
Citigroup experts believe that there is nothing surprising about this since chances are we are going to see a decrease in oil inventories of the OPEC deal is extended, even despite higher production in the USA. Decreasing inventories usually push prices higher for fear of creating a deficit. In the second half of the year, the prices should already exceed the $60/b threshold, they believe.
 
As for the average price of WTI oil, it may reach $62/b over the same period. This means the prices may gain another $10/b in the near future if the necessary conditions set in. However, if the OPEC deal is not extended, we are likely to see an instant price drop following the decision. The thing is that in late 2016, both OPEC and non-OPEC producers already showed the world how fast they managed to increase their production, and this is something that raises concerns in the global market of crude oil.
 
The Russian government already gave us to understand that the actual results of the deal turned out to be less considerable than expected, and this is another reason why we may see no further deal. In case you don’t know, the deal took effect in early 2017 but the price hasn’t gone above $58/b since then. This was a short-term increase on January 3. At the same time, Russia had expected the average price around 55-60 dollars per barrel. Most of the time, the price has been below $55/b. At this point, it’s between 51 and 52 dollars per barrel for Brent oil. WTI is even below the $50/b threshold.
 
So, now we can see that the OPEC deal has improved the situation in the oil market just a little bit. Still, it’s too early to predict whether they are actually going to extend the deal.

 

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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

Trading Week Starts with Oil Price Drop

On Monday, June 19, crude oil is getting cheaper worldwide. Experts say that the price drop has to do with the recent report on the amount of oil rigs in the United States. In particular, the report says that the amount of such rigs has grown over the last week.
 

 

Baker Hughes reported on June 16 that 6 new rigs had been activated over the reporting period, thereby setting a new major high – 767 units, which is the biggest amount of functioning oil rigs since April 2015. By the way, the amount of oil rigs has been continuously growing over the last 22 weeks, which is also the new 30-year record.
Publication date: 19 June 02:27 AM

Brent Drops Below $48/b Amid Qatar’s Paradox

The Qatar crisis failed to push oil prices higher as expected by those who had previously extended the so-called Vienna Accord. Yesterday, on June 7, the global market of crude oil got feverish. The reasons for that was all about the tensions around Qatar, which is an oil exporter from the Persian Gulf.
 
Publication date: 08 June 01:17 AM

Russia Wants Expensive Oil. Is It Really That Beneficial for the Russian Economy?

As you probably know, both Russia and Saudi Arabia are interested in lower oil supply in the global market since the deficit is expected to push oil prices higher, thereby resulting in bigger profits from their oil exports further down the road. That is why they seem to be doing their best to contribute to this ambitious goal.

Publication date: 06 June 11:06 AM

Russian Oil Production to Hit New All-Time High This Year, ACRA Experts Say

According to the experts working for Analytical Credit Rating Agency (ACRA) from Russia, the long-awaited extension of the so-called Vienna Accord signed by OPEC and some of their non-OPEC peers led by Russia may eventually result in higher oil prices along with eliminating the long-lasting oversupply in the global market of crude oil. This is what the experts stated in the recent report on the prospects of the Russian oil industry until 2021.
 
Publication date: 05 June 01:07 PM

Oil Prices Don’t Care About OPEC’s Decisions

As you probably know, last Thursday, OPEC and their non-OPEC fellow decided to extend the so-called Vienna Accord during the recent summit in the capital of Austria. The mentioned agreement implies cutting oil production in order to back higher oil prices in the near future. The agreement was extended for 9 months – until the end of March 2018.

 

 
Publication date: 01 June 04:09 AM

Russian Economy Will Face Challenges After 2018

It’s getting more and more obvious that crude oil is not going to grow as expected, which is why the hopes laid by the Kremlin on higher oil prices and higher income from oil exports are probably not going to become a reality. Most likely, this is not going to happen over the next couple of years as well. Despite extending the Vienna Accord during the recent OPEC summit, the participants of the summit still cannot see the expected results as oil prices still haven’t shown any considerable rally, thereby indicating no significant progress.

Publication date: 28 May 11:46 PM

IMF Demands Land Reform From Ukraine

Pension and land reforms are the two questions on the agenda, without resolving which the Ukrainian government can forget about further loans from the International Monetary Funds.

Publication date: 28 May 11:30 PM

Standard & Poor’s Confirms Ukraine’s Rating

International rating agency Standard & Poor’s (S&P) has confirmed the long-term rating of Ukraine, both for national and foreign currencies. The rating is confirmed at «В-/В», with stable forecast for both national and foreign currencies.
 
S&P analysts underline that confirming the ratings reflects the progress achieved in the macroeconomic situation in Ukraine. The Ukrainian GDP is expected to grow by 1,9% this year.
 
Publication date: 28 May 11:08 AM

OPEC Extends Vienna Accord

The OPEC and their non-OPEC fellows are reported to have extended the so-called Vienna Accord today during the OPEC summit in the capital of Austria. The agreement designed to cut the participants’ oil production is expected to reduce the oversupply of crude oil in the global market in order to back higher oil prices. The agreement is extended for 9 months.
 
Publication date: 25 May 09:45 AM