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Thursday, 20 June 22:24 (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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Masterforex-V Names Biggest Stock Exchanges

Stock exchanges have been operating worldwide for many decades. They are specific financial institutions  or marketplaces that operate to let people and companies invet in various stocks and other securities. Those are the stocks issued by various companies representing various industries - from mining to services. These days, you can invest in stocks, indexes, bonds, options, and other securities.
 
Publication date: 17 May 11:57 AM

Masterforex-V Names SSE's 20 Biggest Companies

There are several cities in the world that can be called centers of business and financial activity. Shanghai, China, is definitely one of them. This is the home to China's biggest stick exchange. Shanghai Stock Exchange (or SSE for short) is the world's 4th biggest stock exchange in terms of market cap and number one in terms of the pace of growth.

Publication date: 17 May 11:23 AM

Masterforex-V Experts Call Hong Kong Exchange Financial World's Biggest Provoker

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Publication date: 27 January 07:56 AM

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Publication date: 04 January 04:13 AM

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Publication date: 26 December 09:40 AM

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Publication date: 23 December 02:01 AM

OPEC and Saudis Are Planning To Back Oil Prices

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Investing in World's Most Secure and Profitable Stocks in NordFX

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Golden Medium: Russia Isn't Concerned About Decreasing Oil Prices

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Publication date: 12 November 11:57 AM