Heroes of Ukraine

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

Saturday, 24 February 17:36 (GMT -05:00)



Stock and commodities markets

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.

 

 

 

 
At the same time, some experts say that this is a temporary drop in oil prices. The latest bearish moves are said to have been of speculative nature. That’s why they expect a sharp increase in oil prices in the near future. Those who support the idea of higher oil prices in the near future back this prediction by the fact that the OPEC reserves have been cut, which will naturally cause higher oil prices further down the road, even despite the current downward pressure of purely speculative nature.
 

 

However, some other experts don’t share this standpoint and say that the current downtrend and a move down below $45/b is a natural outcome rather than a speculator-driven event. In particular, they say that on top of some non-OPEC members, even several OPEC members (Libya and Nigeria) have actually boosted their oil production over the last 2 months. At the same time, the amount of oil rigs functioning in the United States has increased as well, amid growing oil inventories. Moreover, despite the extended Vienna Accord, the global export of crude oil has seen zero change recently, which doesn’t contribute to cutting the oversupply. Amid all of that, they don’t deny a further drop down to $40/b in the near future.

 

 

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

 

Text: Александр Дынниченко
Add to blog
Got a question? – Ask it here »
 

Is crude oil really expensive today?

Oil expert Sergei Shelin decided to share with us his thoughts on the processes currently going on in the global oil market. In particular he thinks that crude oil has been struggling to consolidate around 70 dollars per barrel but the thing is that even the world's biggest oil producers and exporters don't believe in high oil prices in the future.


Publication date: 01 February 10:38 AM

Three Big Questions Related to Oil Prices

Oil prices has been continuously moving up and down over the last few decades, and this is something that keeps worrying millions of traders of investors all over the world. The most difficult thing is to figure out why exactly crude oil prices reach a certain level at any given point, especially these days. 

Publication date: 30 January 02:12 AM

Cryptocurrencies Won't Help Dictators Get Around Sanctions

According to Bloomberg, all the attempts made by authoritarian governments and dictators to get around Western sanction are vain. 

Publication date: 23 January 05:44 AM

U.S. DoE Predicts Oil Market Oversupply over the Next 2 Year

The United States Department of Energy doesn't believe in the OPEC+ deal and expects excessive supply in the global market over the next 2 years. In particular, the January short-term report released by the DoE confirms that. They say this is going to be long-term oversupply. 

Publication date: 16 January 11:46 AM

Brent Oil Is Getting Closer to $70/b, Provoking a Shale Storm

Brent oil has come close to $70/b. It’s interesting to note that Brent oil has reached this level for the first time since 2014. At the same time, international experts now seem to be overwhelmed by mixed feeling about that.

 
According to NordFX, ICE Brent futures (London) for March delivery cost $62,2/b after gaining 0,5% on that day and 3,1% since the start of the trading week. WTI futures cost $63,5/b after gaining 0,8% on that day.
Publication date: 11 January 11:59 AM

OPEC Nations Don’t Want $60/b

The OPEC doesn't seem to be interested in oil prices above $60/b. At least this is what the Iranian Minister of Oil said the other day. By the way, Iran is the OPEC’s third-biggest producer of crude oil.

Publication date: 10 January 03:45 AM

Investment Banks Make Controversial Oil Forecast for 2018

After the OPEC+ deal was extended not so long ago, several investment banks changed their predictions for the global oil prices in 2018. Bloomberg tried to compile those prediction into a single article. 

Publication date: 02 January 11:44 AM

CBOE Launches World’s First Bitcoin Futures

As promised, the CBOE launched the world's first Bitcoin futures on December 10th at 15 p.m. Central Standard Time (CST). The first BTC futures trading session started at 15000 USD/BTC. Within the first couple of minutes, there were 150 transactions processed. Over the first 20 minutes, the exchange rate increased up to 15940 USD/BTC. Lateronitwenttemporarilyupto 16600 USD/BTC.

Publication date: 11 December 02:26 AM

American Shale Oil Producers Enjoy OPEC+ Deal Extension

On the last day of November, the OPEC and several non-OPEC oil exporters met in Vienna to discuss the future of the global oil market during the OPEC summit. The summit ended with extending the OPEC+ deal until the end of 2018. Experts say this decision means the OPEC+ participants have lost the long-term oil war with American shale oil companies.

Publication date: 03 December 11:03 PM

OPEC Is Worried About U.S. Shale Oil Production Prospects

The OPEC is concerned that their American rivals producing shale oil may catch at the chance given them by the OPEC+ deal. The deal is aimed to cap oil production and restore the market balance in favor of higher oil prices. The OPEC+ agreement is likely to be extended during the forthcoming OPEC summit on November 30th in Vienna, Austria.

 
Publication date: 29 November 11:49 AM