Heroes of Ukraine

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

Wednesday, 22 November 04:43 (GMT -05:00)



Stock and commodities markets

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.
 

 

 

 

First off, let’s take a look at yesterday’s stats. For the first time since May 5, Brent oil prices plunged below $48/b, all the way down to $47,98/b, Masterforex-V Academy experts report. As for the WTI futures for July delivery, the price got cheaper by 4,79% at a time, all the way down to $45,88/b, NordFX experts report.
 
The experts say that the prices also got affected by the oil stats coming from the United States. In particular, in yesterday’s report released by the U.S. Department of Energy, it was stated that the commercial crude oil inventories had increased by 3,3 million barrels or 0,6% all the way up to 513,2 million barrels over the reported week. It’s interesting to note that analysts had expected a drop by roughly the same amount – 3,464 million barrels. This means that they totally failed to predict the actual figures. At the same time, the amount of gasoline and distillates in the U.S. inventories increased as well over the same reporting period. In this case, the increase was bigger than expected.

 

 
 
 
 
However, the American oil stats still were secondary compared to the mentioned situation around Qatar, which is one of the world’s biggest oil nations. At first, some Arabian countries unexpectedly blocked Qatar earlier last week, which pushed oil prices 1,5-2% higher in an instance. However, this was a short-term reaction. Shortly after the increase, the prices instantly dropped 3% down. By Wednesday evening, the prices had already dropped below the level seen before the Qatar crisis.
 
At first sight, nobody expected the oil market to react this way to the situation around an OPEC member. Still, Masterforex-V Academy experts say that if you dive deeper into the situation, there’s nothing to be surprised.  For starters, Qatar is the weakest link in the OPEC chain producing the least amount of crude oil among the cartel members. Secondly, the previous expectations related to extending the Vienna Accord during the recent OPEC summit turned out to be overheated. Oil prices had dropped 10% down since May 25 by the time the Qatar crisis broke out. Thirdly, the blockade has never interrupted or affected the export of crude oil from the Persian Gulf despite all the fears coming from international traders. And lastly, the confrontation on the Arab world undermines the prospects of OPEC consolidation, which may eventually lead to some of those members violating the agreement and starting to produce more oil, potentially by Qatar, Iran, Oman, and Nigeria. Some experts believe that international traders and investors will keep on getting more pessimistic over the Vienna Accord since they can see that OPEC has been continuously failing to implement their ambitious goals so far.

 

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

 

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

Saudi Arabia Doesn’t Want Oil Prices to Grow Too Fast

Reuters reports that Saudi Arabia doesn’t want oil prices to grow too fast. This is what Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid A. Al-Falih told during his speech at the UN Climate Change Conference 2017 in Bonn, Germany.

Publication date: 19 November 08:58 AM

What’s the Fair Price of Crude Oil Today?

For many economies out there, especially those dependent on the export of crude oil, oil prices have always been a major indicator to monitor. These days, the international expert community is divided over the future of the global oil market. 

Publication date: 18 November 09:36 AM

Crude Oil Stops Being a Lifeline for the Russian Ruble

 The U.S. Dollar is getting more expensive against the Russian Ruble again as the Russian currency is feeling pressure from the new round of the Western sanctions. Crude oil seems to have stop saving the day for the Russian economy and national currency.

Publication date: 18 November 09:33 AM

Oil Market Shows No Reaction To Optimistic OPEC Report

Oil market showed almost no reaction to the annual OPEC oil report released on November 13th, even though the report happened to be fairly optimistic. In particular, while WTI oil futures for December delivery increased in price by as little as 0,11% up to $56,80/b, Brent oil futures for January delivery lost 0.09% and moved down to $63,46/b.

Publication date: 18 November 09:26 AM

Russia Is Still Dependent On Crude Oil

Is the Russian economy getting rid of its dependency on crude oil? Even though Russian politicians say that’s really the case, famous Russian economist Igor Nikolaev tried to find out the truth backed by figures.

Publication date: 17 November 11:52 AM

High Oil Prices Threaten OPEC+

 Today’s oil prices, which are relatively high, as well as some tensions in Saudi Arabia, may hinder the prolongation of the OPEC+ agreement signed last year, PRIME reports.

Publication date: 17 November 11:49 AM

Oil Prices Won’t Exceed $75/b, BofA Experts Say

Even if the geopolitical situation is the most favorable for the global oil market, oil prices are still never going to exceed the $75/b threshold again, Bank of America Merrill Lynch (BofA) experts believe.

Publication date: 17 November 11:13 AM

Wall Street Banks Improve Their Oil Forecasts

For the first time in 6 months, Wall Street banks seem to be optimistic about the near future of crude oil, The Wall Street Journal reports.

Publication date: 10 November 07:06 AM

Cryptocurrency Market Cap Goes Above $200 Billion

Last week, the cryptocurrency market capitalization exceeded the $200 billion threshold for the first time in history. According to Coinmarketcap, a resource monitoring 1254 digital currencies on 6400 online exchanges, Bitcoin was the biggest market driver of the market-cap rally. 

Publication date: 10 November 01:12 AM

CME Group Announces Bitcoin Futures

CME Group, the world’s biggest operator of futures exchanges, has announced Bitcoin futures, the world’s first and most popular cryptocurrency to date. The information was first made public by The Financial Times.

Publication date: 10 November 01:08 AM