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Sunday, 10 December 19:40 (GMT -05:00)



Stock and commodities markets

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.
 

 

On top of that, the minister expects the global market of crude oil to stay oversupplied in 2018. That’s why the Saudis support the OPEC’s idea to extend the OPEC+ agreement for the next year. For those of you who don’t know, the decision to extend the OPEC+ deal is expected to be made during the forthcoming OPEC summit scheduled for November 30th in Vienna, Austria. the international community expects the deal to be extended for 6 months this time. However, the Saudis assume that the deal won’t let the oil exporters achieve the expected goals by March 2018, which is why they advocate the idea of extending the deal for the rest of 2018.
 
Once again, the Saudi Arabian minister claims that the Saudis don’t want a too rapid price rally in the global oil market since this may shock the consumers. Also, they assume that a way out of the OPEC+ agreement should be gradual so as to let the importers get used to it.
 
While celebrating the success achieved by the OPEC+ agreement, the minister said that thanks to the deal the oil inventories had dropped by 50% relative to the expected level to let oil prices set a new 24-month high.
 
It’s interesting to note that the OPEC+ deal extension is supported by most of the participants. That’s already been confirmed by Russia, the UAE, Oman, and Iraq.
 

 

Brent oil was trading above $62/b on November 17th. That’s confirmed by the chart below, courtesy of FortFS:

 

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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

U.S. Stats Pushed Oil Prices Higher

According to online source Finanz, the U.S. crude oil inventories shrank over the past week, which pushed oil prices higher. After 3 weeks of retracing, crude oil is rallying confidently again. The Brent oil futures for January delivery reached $63,29/b, which is 1,15% higher than a day before. At the same time, The WTI oil futures for January delivery gained more than 2% and reached $57,94/b, which is the highest level since July 2015.

Publication date: 25 November 01:14 AM

Oil Market Is Under Pressure In Advance of OPEC Summit

Publication date: 24 November 07:01 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