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Tuesday, 18 September 16:20 (GMT -05:00)



Stock and commodities markets

Crude Oil Goes Above $80/b, Morgan Stanley Improves Oil Forecast


On Thursday, May 17th, Brent oil exceeded $80/b for the first time in 3,5 years. The last time the price reached this level was on November 25th, 2014.

In particular, the ICE Brent oil futures (London) for July delivery reached $80,18/b. This was a 0,9% gain over the last 24 hours, 8% since early May, and 19,5% since January 1st, 2018.
 
At this point, international experts name a number of reasons pushing oil prices higher. For starters, this is about shrining U.S. oil inventories (minus 1,4 barrels of crude oil and 3,8 million barrels of gasoline for the past week alone) as well as the sanctions the USA is going to impose on Iran in the near future after the former quit the nuclear deal. Another reason is the fact that the oil production in Venezuela has been going down for quite a while. At the same time, hedge funds have been actively betting on higher oil prices amid decreasing oil inventories in OECD states (all the way down to the lows of 2015). It seems that the decline in the global demand for crude oil predicted by the IEA coupled with higher oil production by non-OPEC producers has failed so far to convince international investors that there will be no oil deficit in the near future.
 

Still, chances are the market panic vanishes over time. Experts say there is a huge gap between paper oil and physical oil (oil futures and actual crude oil). To be more specific, there is a major imbalance in favor of paper oil. Still, according to a Reuters source, we may well see the market cleaning up shortly.

Still, Morgan Stanley and Bank of America anticipate higher oil prices over the long term. They
havealreadyimprovedtheir 2020 oilforecastsfrom 65 dollarsperbarrelallthewayupto 90 dollarsperbarrel. The truth is, they have raised the bar due to some tech factors. The thing is, there will be new fuel standards introduced for sea vessels in 2020 amid an increased demand for diesel and aviation fuel while oil refineries cannot handle the increased demand of distillates.

 

 

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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

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Publication date: 11 September 10:40 AM

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

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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

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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

Trump Urges OPEC to Raise Their Daily Oil Production by 2M Barrels

Donald Trump claims that the OPEC should raise their daily oil production by 2 million barrels. During his interview to Fox News, he accused the oil cartel of manipulating oil prices.

Publication date: 05 July 11:47 AM

OPEC+ Participants Want to Make the Deal Indefinite but Without Quotes

According to Russian Minister of Energy Alexander Novak, the leaders of Russia and Saudi Arabia decided to extend the OPEC+ deal. The minister said that this decision to make the deal indefinite in time took place not so long ago in Moscow. 

Publication date: 27 June 11:27 AM

Saudi Arabia Raises Oil Prices for Asian and European Buyers

Saudi Arabia is reported to have raised oil prices for Asian and European importers. This is confirmed by Bloomberg.

Publication date: 09 June 10:26 PM

Market Players Play Oil Price Guessing Games

The international market of crude oil seems to be in panic. Yet, the panic is snowballing. The reason for that is said to be the statement made by Russian Energy Minister Alexander Novak about the possibility of easing the OPEC+ deal in June 2018, which came as a surprise to the international trading community.

 
Publication date: 29 May 01:41 PM