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Saturday, 20 October 16:32 (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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USA Leaves China Without Crude Oil, Russia Is Ready To Compensate

The trade war between the United States and China is still underway. Earlier this month, America made another attempt to undermine the Chinese economy. The thing is, that up until recently, America used to be one of the biggest exporters of crude oil to China. In summer, the U.S. export of crude oil to China used to be equal to 10,5 million barrels a month. At this point, America has almost suspended the export of crude oil to China. Last month American oil companies shipped as little as 600K barrels, with no oil shipping planned for this month.

Publication date: 17 October 10:29 AM

Evgeniy Filichkin: FortFC Launches pre-ICO

While skeptics armed with political axioms, and complicated math formulas, are trying to persuade the world that sooner or later, the cryptomarket industry is doomed to exhaust its potential at some point in the future, the cryptomarket itself is becoming a part of the global economy.

Publication date: 03 October 09:10 AM

Trump is helpless: oil prices keep going up

Oil prices keep going up. Brent oil has just exceeded $83/b. Obviously, Donal Trump's attempts to urge the OPEC to increase their oil production have filed so far. For those of you who don't know, not so long ago Donald Trump threatened the OPEC in general and Middle-Eastern oil producers in particular with consequences if they refuse to start increasing their oil production to dump international oil prices as soon as possible. However, those threats seem to have had no impact on the OPEC and the prices are still going up. 

Publication date: 01 October 10:15 AM

Trump Will Take Revenge on Middle East because of Crude Oils

Donald Trump threated some Middle Eastern oil producers to take revenge on them because of crude oil prices. This is not the first time the American president is criticizing the Middle East in Twitter for being reluctant to contribute to lower oil prices. 

Publication date: 24 September 10:02 AM

China declares crude oil war on USA

Beijing is now considering the opportunity to cut down on the export of crude oil from the United States in response to Washington's decision to raise the import duties on Chinese products. The energy war between the USa and China may also affect Russia.

Publication date: 11 September 11:55 AM

China's dependence on crude oil increases fast

Over the last few years, China has been getting more and more dependent on the import of crude oil and some other energy carriers. Most of those oil imports are of Russian origin. the thing is that CHina's domestic oil and natural gas production has been contracting over the last few years while the country's production capacities have increased and are now in high demand of more energy.

Publication date: 11 September 10:40 AM

Trump Is Close to His Goal - Oil at $50/b

According to Finanz, President Trump is close to making oil prices drop down to $50/b like never before. Last week was bearish for the global market of crude oil. This happened mainly due to the agreement between the U.S. president and the King of Saudi Arabia.

Publication date: 23 August 11:36 AM

Investment Banks Raise Their Oil Forecasts

The world's biggest investment banks have raised their oil forecasts again, for the 10th month in a row, The Wall Street Journal reports. 

Publication date: 02 August 12:00 PM

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