Heroes of Ukraine

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

Wednesday, 27 May 01:57 (GMT -05:00)



Stock and commodities markets

Brent Oil Price May Drop Below $40/B in June


Oil prices have been following a bearish trend over the last few days. International experts believe that if the OPEC doesn’t extend the so-called Vienna Accord, the prices are likely to drop below 40 dollars per barrel in a matter of weeks, if not days.

 

 

 

 
According to EverFX, the decision is going to be made during the forthcoming OPEC summit scheduled for the end of May. The OPEC is expected to extend the agreement to sustain oil prices above 50 dollars per barrel. Some experts even think that the cartel may cut their oil production even further down.
 
We remind you that the previous oil-production-cut agreement was signed by the OPEC and some non-OPEC members including Russia. The agreement seems to have failed to fulfil their expectations since the prices have dropped by more than 20% over the last few weeks. If the participants refuse to extend the agreement this time, the prices may dive deeper down, most likely below 40 barrels per barrel. This may well happen this June.
 

 

Still, the participants are rumored to have been staying positive on the idea of extending the agreement this time. The initial agreement was signed in November 2016 and took effect in January 2017. It implied cutting the OPEC’s total production by 1.2 million barrels a day as opposed to the production level of October 2016. The non-OPEC participants of the deal announced their production cuts by 600K barrels, with Russia being responsible for 300K of it.
 

Who do OPEC members say on possible agreement extension?

123080_image_large.jpg

The production cut agreement expires on July 2017. Since oil prices have been going down over the last few weeks, international experts believe that the agreement is likely to extended. As mentioned, the final decision will be made during the forthcoming OPEC summit in Austria. The summit is scheduled for May 25, 2017.
 
The idea of extending the agreement is backed by the United Arab Emirates. They think that higher oil production in the USA doesn’t threaten the Vienna Accord. On top of that, the OPEC is expected to consider several scenarios regarding the Vienna Accord. The participants will vote for the best solution.
 
Another reason why the agreement has all chances to be extended is the fact that Saudi Arabia shares the UAE’s optimism and doesn’t mind extending the agreement as well. For those of you who don’t know, Saudi Arabia is the OPEC’s unofficial leader, which is why any idea supported by Saudi Arabia has more chances to be supported by other OPEC members. Kuwait and Brunei are also on the list of those who support the idea of extending the Vienna Accord at least for the restoof 2017.
 
As for Russia, their position is still unclear, though Russia seems to share the OPEC’s opinion that the global market needs rebalancing and is likely to back the agreement extension.
 

 

American shale oil companies affect the market.
 

photo_212228.jpg

As of May 10, 2017, Brent oil stayed close to 50 dollars per barrel. Analysts say that the prices managed to regain a bit of the lost ground after the announcement that the key oil market players were going to cut their supplies to Asia. However, they don’t believe that the news will manage to bring prices back above the 50-dollar threshold to let them stay there and move higher to 55 and 60 dollars per barrel, especially amid the EIA’s predictions that America’s oil production may turn out to be higher – 9,3 million barrels a day instead of 9,2 million b/d. In 2018, it is expected to reach 10 million b/d. If that’s the case, that will extern downward pressure on oil prices. That’s why some other experts believe that the U.S. shale oil production is something that won’t let the OPEC and Russia succeed in backing higher oil prices by extending the Vienna Accord.

 

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

 

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

Is Gold Worth Investing Amid Crisis?

Securing assets has always been number-one goal during crises. This is something that worries borth financial experts and plain folks who are far from the  peculiarities of the financial world but who are still witnessing their savings vanish amid inflation and devaluation.

Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

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

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

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

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