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Saturday, 21 July 01:47 (GMT -05:00)



Stock and commodities markets

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.
 
Another interesting fact to keep in mind is that the amount of oil rigs in the United States has doubled over the last 12 months, or has rather gone up by 2,2 times, to be more exact. This fact has a number of consequences. On the one hand, the pace at which new oil rigs emerge is going to slow down at some point in the near future. On the other hand, the recent OPEC’s decision to extend the Vienna Accord and related production cuts is made up for by the U.S. shale oil production, which has been growing for a while. This still makes the global market oversupplied, which in its turn keeps on pressing oil prices down to new local lows.
 

 

Earlier today, the London exchange (ICE) saw Brent oil futures for oil delivery drop by 0,32% down to $47,22/b. At the same time, WTI futures lost 0,38% and dropped down to $44,80/b, NordFX experts report.

At the same time, it’s interesting to note that the United States is not the only nation increasing its oil production. Libya’s major oil company National Oil Co. (NOC) expects the local oil production to grow from today’s 800K b/d all the way up to 900K b/d in the near future (most probably, within the next few weeks or even days).

 

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

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Publication date: 19 July 09:45 AM

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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

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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