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Saturday, 21 July 01:46 (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.

 

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Oil Prices May Skyrocket to $400/b if Iran Blocks the Strait of Hormuz

Blocking the Strait of Hormuz will inevitably trigger a global energy crisis while pushing oil prices to unseen heights, maybe even all the way up to $400/b. This is what the experts interviewed by PRIME think about the situation.

Publication date: 19 July 09:45 AM

Higher OPEC+ Production Quotas Won’t Raise Oil Prices, Kudrin Says

Chairman of the Russian Accounts Chamber Alexei Kudrin assumes that the OPEC+ participants’ decision to increase the daily oil production quotas won’t affect international oil prices.

Publication date: 16 July 09:58 AM

Trump Urges OPEC to Raise Their Daily Oil Production by 2M Barrels

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Publication date: 05 July 11:47 AM

OPEC+ Participants Want to Make the Deal Indefinite but Without Quotes

According to Russian Minister of Energy Alexander Novak, the leaders of Russia and Saudi Arabia decided to extend the OPEC+ deal. The minister said that this decision to make the deal indefinite in time took place not so long ago in Moscow. 

Publication date: 27 June 11:27 AM

Saudi Arabia Raises Oil Prices for Asian and European Buyers

Saudi Arabia is reported to have raised oil prices for Asian and European importers. This is confirmed by Bloomberg.

Publication date: 09 June 10:26 PM

Market Players Play Oil Price Guessing Games

The international market of crude oil seems to be in panic. Yet, the panic is snowballing. The reason for that is said to be the statement made by Russian Energy Minister Alexander Novak about the possibility of easing the OPEC+ deal in June 2018, which came as a surprise to the international trading community.

 
Publication date: 29 May 01:41 PM

USA Outpaces Russia to Become World’s Biggest Oil Producer

In March 2018, the United States outpaced Russia in terms of oil production. This means that the USA is now the biggest producer of crude oil in the world.

Publication date: 24 May 11:26 AM

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast

On Thursday, May 17th, Brent oil exceeded $80/b for the first time in 3,5 years. The last time the price reached this level was on November 25th, 2014.

Publication date: 17 May 11:20 AM

Oil Prices At $79/b, Russian Ruble Still Weak. Why?

On Tuesday, May 15th, Brent oil reached $79/b. Strange as it may seem, the Russian Ruble hasn’t reacted to this so far, even though this always has been a positive sign for Russia’s national economy and currency heavily reliant on crude oil prices. Moreover, the currency has been going slightly down for a while despite being backed by higher oil prices.

Publication date: 15 May 01:19 PM

Russia Isn’t Interested In OPEC+ Anymore

Right in advanced of the forthcoming OPEC+ summit some experts doubt that Russia is still interested in the agreement. The strategic objectives of the OPEC+ deal are almost reached. The imbalance in the global oil market has almost been eliminated. The cost of a barrel of Brent oil has increased by more than 100% since late 2016. At this point Brent oil is trading above 70 dollars per barrel. On Q1 2018, the OPEC made 400 million dollars a day more than 12 months before.

Publication date: 28 April 07:57 AM