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Tuesday, 27 October 10:06 (GMT -05:00)



Stock and commodities markets

Why Are OPEC and Russia Unable to Trigger Oil Price Rally?


Not so long ago, oil prices reached the 10-month low. Since early 2017, oil prices have already dropped by 20%. The low efficiency of the joint efforts to cap oil production in order to support oil prices is now rated differently by the international expert community.
 

 

 

 

In June 21, the prices dropped by 2% at a time. This brought them to the 10-month low, which came as a shock to most observers out there. After the OPEC and Russia agreed to extend the so-called Vienna Accord, most experts started predicting higher oil prices, but they have failed so far, as you can clearly see.
 
Apparently, the oil exporters were hoping for the same scenario that was previously seen a number of times in the past. The thing is, production cuts have always resulted in higher oil price, but not this time. Being encouraged by the optimism expressed by the oil exporters, many traders and investors started loading up on oil futures, but now they seem to have failed on their oil deals since the bias is now bearish despite the oil agreement extension.

 

 

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A couple of months after the initial agreement was signed, the participants found out that their oil inventories waiting to be exported were actually shrinking at a slower-than-expected pace. The demand for crude oil around the globe happened to be lagging behind their expectations as well. On top of that, American shale oil companies started behaving the way it was expected.
 
Small-scale American companies producing shale oil used to be on the verge of bankruptcy due to cheap Saudi oil exported in quite large amounts and over an extended period of time. However, the shale companies survived this and even revived as soon as oil prices started going up earlier this year. They unexpectedly started pumping more oil with the help of fewer oil rigs.
 

 

As a result, nobody can deny the shale oil phenomenon today. Yet, the impact seems to be serious. The thing is, despite the civil war in Yemen, the Qatar crisis, and the disputes between Russia and the USA over the situation in Syria, oil prices have still been going down over the last few weeks. The whole point is, previously any of those factors could have triggered an oil rally in an instance. But this is not happening now, and chances are the U.S. shale oil industry is currently one of the key drivers of the downtrend in the global market of crude oil. Of course, the downtrend can be partially explained by higher production in Libya, Brazil and some other oil-exporting countries. However, there is no denying the fact that the abundance of American shale oil and natural gas is the key factor pressing oil prices. For the first time in many decades, the USA has become a major oil exporter.

 

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Goldman Sachs is back in the game

20 years ago, Goldman Sachs used to be a Wall Street legend and a dream company to work for graduates with a financial degree. Over the last few years, the bank has been a loser with thousands of disappointed employees, managers, and investors. However, the other day Goldman Sachs made an attempt to get back in the game.

Publication date: 16 October 01:17 PM

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%.

Publication date: 12 August 01:39 AM

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

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