Heroes of Ukraine

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

Friday, 13 December 05:35 (GMT -05:00)



Stock and commodities markets

OPEC and Russia Created a Dangerous Rival


Russian oil expert Ivan Priobrazhenskiy has commented on the negative outcome of curbing oil production (the OPEC+ deal). He claims that while trying to create an artificial deficit in the global oil market, the OPEC+ deal participants actually did American shale oil producers a huge favor. The thing is that American shale oil companies have been boosting their production over the last year or so, and they can take the United States to the status of the world’s biggest oil producer. They have already outpaced Saudi Arabia and are close to outpacing Russia, which is currently number one in the world in terms of crude oil production.
 
At the same time, America becoming the world’s leading oil producer is not something unreal anymore. By the way, this is exactly what the IEA predicts. Given the fact that the IEA is headquartered in France, we can say that the agency is equidistant from all the parties concerned. The local experts publish oil reports on a regular basis. The latest one reads that the American shale oil companies are going to boost their production in the near future.
 

 

Another production increase may trigger a price drop in the global oil market. In this case, lower oil prices will result from increasing oversupply, which is a natural outcome in such situations.
 

1fd505eaa9001f771e0fb42f51ef2861.jpg

The report reads that over the period of September through November, American shale oil companies increased their production by 846K b/d. So, they expect the United States to outperform Russia and become number one later this year.
 
At the same time, experts predict the global economy to accelerate its growth this and next year, which will definitely increase the global demand for crude oil. The IMF also expects the growth rate to be higher than expected. Based on the IMF’s report, the IEA increased their global demand growth forecast from 1,3 million b/d up to 1,4 million b/d. However, it’s interesting to note that last year, this rate happened to be slightly higher – 1,6 million b/d.
 
The OPEC+ deal stimulated higher shale oil production in the United States
 
In theory, this set of rules is supposed to trigger an oil rally, which is something that was planned by Russia and the OPEC when they were signing and then extending the so-called OPEC+ agreement designed to cap their oil production.
 
Indeed, the IEA reports that the participants’ oil inventories did actually drop dramatically ­– from 264 million barrels in December 2016 all the way down to 52 million barrels in December 2017. On the other hand, lower inventories and higher prices triggered another shale oil boom in the USA. Apparently, American shale oil got profitable again. The thing is, that shale oil production is relatively costly, which makes it unprofitable at low oil prices.
 
The bottom line is that Russia and the OPEC actually helped the American shale oil industry to rise again, thereby creating a serious rival. The shale oil production in the United States has been booming over the recent months. Experts report that the local shale oil companies altogether have already outperformed Saudi Arabia in terms of daily oil production and are now on their way to outpace Russia and become the world’s biggest oil producer.
 

 

NordFX experts report that Brent oil is currently trading at 65,6 dollars per barrel.m2us86v28gonsi3bjkxtsbcoj.png

 

 

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

 

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

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

iOS13 Outshines iPhone

For Apple fans, September has been a special month from many years. This is the time when Apple introduces the biggest innovations and the latest products destined to be best sellers for the next 12 months. This time, everything is likely going to be the same. In just a couple of days, on September 10th, we are to witness another Apple event.
 
Publication date: 05 September 03:28 AM

US-China Trade War Makes Oil Prices Drop

The previous trading week wasn't an exiting one. The oil prices grew in the first part of the week while trying to make up for the losses of the previous week. Still, the second half of the week turned out to be a bearish one. WTI oil prices dropped below 55 dollars per barrel while brent oil dropped down to 61 dollars per barrel. Yet, the bearish momentum is still there.

Publication date: 04 August 08:33 AM

Gold Prices At Highest Levels Since 2013

The recent statements made by the governors and presidents of the world's leading central banks, including the Fed and the ECB, eventually resulted ingold prices making it over 1400 dollars per troy ounce. This means that the current price of gold is the highest one over the last 6 years. So, the bull market of gold is underway.
Publication date: 03 August 04:17 AM

Middle East Tensions Support Oil Prices

The currenty trading week has been controversial for the international market of crude oil. Chances are, the market is going to be relatively neutral throughout the rest of the week. Brent oil is trading around 63,50 dollars per barrel while WTI costs 56 dollars per barrel.
Publication date: 30 July 11:07 AM

Is Economic Decline In USA Inevitable?

The NY Fed model points out to the fact that the probability of another recession in the American economy has increased all the way up to 33%. Over the last 50 years, such signals have almost always bee followed by recessions.
 
Publication date: 13 July 08:39 AM

Will USA Manage To Prevent Stock Market Crash?

The U.S. Federal Reserve has eased their rhetorics in order to avoid another stock market crash. International experts are now trying to predict the possible consequences of the decision made by the American financial regulator, especially form the stand point of international investors. 

Publication date: 11 July 11:31 AM

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