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Thursday, 18 October 19:45 (GMT -05:00)



Stock and commodities markets

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.
 
Apparently, the oversupply is expected to take place as the result of the shale oil renaissance in the USA, Canada and other oil nations not participating in the mentioned oil agreement that was designed to cap the production and balance the market to let the prices grow to comfortable levels. Those nations are expected to export 2,4 million barrels a day.

On a global scale, the global supply is expected to increase by 2,8 million barrels a day, which the highest increase since 2014. At the same time, the global demand for crude oil is expected to grow by as little as 1,7 million barrels a day. Apparently, Asian exporters are expected to contribute to this demand growth since Europe is unlikely to consume more crude oil than today. Canada
isexpectedtocutdownontheconsumption.

Last year, the average daily production and consumption stayed at 97,97 million barrels and 98,38 barrels respectively. This made the oil inventories decrease, which consequently led to a 30% increase in oil prices all the way up to 69 dollars per barrels for Brent oil, which became the highest price since December 2014.

However, the DoE experts believe that the party is almost over for the OPEC and some of their allies. The thing is that the oil producers altogether are expected to start producing 0,2 million barrels a day more than consumed worldwide, and the oversupply is going to increase up to 0,35 million barrels a day in 2019. In some quarters, the oversupply may increase to 1 million barrels a day.

This means that the OPEC+ deal is probably doomed to fail. The thing is that the commercial oil inventories are expected to grow all the way up to 2,964 billion barrels against 2,908 billion barrels in December 2017, to 3,049 billion barrels on late 2019.

 


At the same time, the DoE predicts a faster-than-expected increase in the American shale oil production. To be more specific, the forecast was raised from 10,23m b/d to 10,58m b/d, to 11,4m b/d in 2019, FortFS experts report.

 

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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

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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