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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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European ETFs - Decent Alternative to American ETFs

The mentioned PRIIP rules are forcing the financial service providers and brokers to publish a specific set of info documents including the so-called KID with the key info on certain investment and insurance products. Since the funds coming from outside of Europe do not conform to these requirements, they cannot be offered to EU residents as investment products.
Publication date: 19 September 01:48 AM

Warren Buffett Keeps Loading Up On Bank of America's Stock

Berkshire Hathaway keeps loading up on Bank of America's stock. This time, during the period of July 31st - August 4th, they purchased over 13,6 million shares, which cost 337 million dollars. The average prices was 24,81 dollars per share. With that being said, Berkshire Hathaway now owns 1,03 billion shares of the stock, which is 26,15 billion dollars in dollar terms. As for the Federal Reserve, they agreed to increase the fund's share to 24,9%.

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WTI Price Drops After US Oil Inventories Report

Today, another crude oil inventories report has been released by the USA:

Publication date: 03 June 12:21 PM

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Publication date: 14 April 02:09 AM

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Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

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Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM

Oil Prices Have Made The Biggest Rally In History

Gold, yen, and oil currencies are getting more expensive. The strike came for an unexpected direction. Saudi Arabia's oil facilities were attacked, which increased geopolitical risks in the region and simultaneously undermined the global oil supplies. That was basically the reason why crude oil prices made the biggest rally in history but then moved back a bit and are still trading over 10% higher relative to the start of the trading session. 
 
Publication date: 16 September 03:26 AM