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Wednesday, 22 November 04:33 (GMT -05:00)



Stock and commodities markets

OPEC Urges American Shale Oil Producers to Join Oil Agreement


The OPEC is reported to have offered American shale oil companies to join the Vienna Accord, also known as the OPEC+, which is the agreement designed to cap the production of crude oil and restore the market balance for the sake of higher oil prices in the future. However, some experts say that they won’t agree to do so even if they are threatened.

 

 

 

 
For those of you who don’t know, the agreement implies capping their oil production voluntarily to make oil prices grow and let those oil producers make more money form their oil exports at the end of the day. However, the most interesting part is that the OPEC is going to announce some emergency measures if their American peers refuse to join the agreement in the near future. However, like I said before, American shale companies are not going to agree no matter what the cartel does.
 

At the same time, NordFX reports that the oil market was bullish yesterday. In particular, the Brent futures for December delivery were trading around $56,7/b earlier on Thursday. WTI gained some value as well

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According NordFX analysts, the price rally has been backed by Saudi Arabia’s announcement of future oil export cuts. Not so long ago, Saudi Aramco announced an intention to implement the biggest oil export cuts in history in order to push oil prices higher. They say the export cuts will reach 560K barrels a day. All in all, Saudi Arabia is planning to export 7,15 million barrels a day even though the demand is around 7,7 million barrels a day.
 
Some experts say there is no need to treat this announcement too seriously. Some of them say that it’s hard to call 7,15 million barrels a day a new record low since in July alone they exported 6,60 million barrels a day. That’s why they think that the export is going to grow after the summer decline. Other experts believe that the Saudis are trying to play with the market while getting ready for the next OPEC summit scheduled for November 30th in Vienna.
 
American Shale Companies’ Decision Matters
 
In 2017 and 2018, the OPEC expects an increase in the global demand for crude oil by 30K b/d. Given the fact that the forecasts are improving, the global demand is expected to reach 96,8 million b/d, which is +1,5% as opposed to 2016. They also expect the global demand to reach 98,19 million b/d in 2018.
 

 

It is interesting to note that, unlike the OPEC, independent observers don’t see any reasons for higher oil prices in the near future. Even the IMF revised their forecast by lowering the average expected price form $55 b/d down to $50 b/d. The Fund’s experts say that despite the OPEC+ agreement, oil prices are still under pressure because of the unexpectedly high production of shale oil in the United States. That said, if American shale companies decide to join the agreement, this may change the game.

 

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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