Heroes of Ukraine

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

Friday, 21 July 02:41 (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 »
 

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

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

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