Heroes of Ukraine

«Market Leader» - news and previews making you rich.

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



Stock and commodities markets

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.
 
In response to the statement, oil prices started going down on Thursday. The next day, a barrel of Brent oil cost under $77, which is over 2% below the recent open prices. At that point, the biggest newsmakers were participating in a major energy summit in Saint Petersburg, Russia. During the summit, they made some more of those unexpected statements. For instance, Mr. Novak is convinced that when oil prices are too high, the market gets overheated, which further leads to instability and excessive market supply. In the meantime, the Oil Minister of Saudi Arabia confirmed that the OPEC+ participants would probably start increasing their oil production in the second half of the year. The Russian minister agreed and clarified that this would probably take place somewhere in Q3 2018.

It’s interesting to note that just a couple of weeks ago, most experts were convinced that the OPEC+ deal would be extended until the end of the year during the next summit. However, their desire to stick to the agreement was undermined by a number of geopolitical factors like Donald Trump’s decision to impose new sanctions on Iran, the OPEC’s second-biggest oil producer, as well as the aggravating oil crisis in Venezuela and some other factors.

Today, the international community is no longer divided over the direction of the future trend. Instead, they are trying to guess how deep and fast the prices will go down in the near future. Some of the participants of the mentioned summit say that 50-60 dollars per barrel represent fair oil prices at this point.



 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

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

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

USA Outpaces Russia to Become World’s Biggest Oil Producer

In March 2018, the United States outpaced Russia in terms of oil production. This means that the USA is now the biggest producer of crude oil in the world.

Publication date: 24 May 11:26 AM