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Friday, 19 October 18:50 (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.
 

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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

 

 

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USA Leaves China Without Crude Oil, Russia Is Ready To Compensate

The trade war between the United States and China is still underway. Earlier this month, America made another attempt to undermine the Chinese economy. The thing is, that up until recently, America used to be one of the biggest exporters of crude oil to China. In summer, the U.S. export of crude oil to China used to be equal to 10,5 million barrels a month. At this point, America has almost suspended the export of crude oil to China. Last month American oil companies shipped as little as 600K barrels, with no oil shipping planned for this month.

Publication date: 17 October 10:29 AM

Evgeniy Filichkin: FortFC Launches pre-ICO

While skeptics armed with political axioms, and complicated math formulas, are trying to persuade the world that sooner or later, the cryptomarket industry is doomed to exhaust its potential at some point in the future, the cryptomarket itself is becoming a part of the global economy.

Publication date: 03 October 09:10 AM

Trump is helpless: oil prices keep going up

Oil prices keep going up. Brent oil has just exceeded $83/b. Obviously, Donal Trump's attempts to urge the OPEC to increase their oil production have filed so far. For those of you who don't know, not so long ago Donald Trump threatened the OPEC in general and Middle-Eastern oil producers in particular with consequences if they refuse to start increasing their oil production to dump international oil prices as soon as possible. However, those threats seem to have had no impact on the OPEC and the prices are still going up. 

Publication date: 01 October 10:15 AM

Trump Will Take Revenge on Middle East because of Crude Oils

Donald Trump threated some Middle Eastern oil producers to take revenge on them because of crude oil prices. This is not the first time the American president is criticizing the Middle East in Twitter for being reluctant to contribute to lower oil prices. 

Publication date: 24 September 10:02 AM

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