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Tuesday, 27 October 09:52 (GMT -05:00)



Stock and commodities markets

OPEC Urges American Shale Oil Producers to Join Oil Agreement


The OPEC is reported to have offered American shale oil companies to join the Vienna Accord, also known as the OPEC+, which is the agreement designed to cap the production of crude oil and restore the market balance for the sake of higher oil prices in the future. However, some experts say that they won’t agree to do so even if they are threatened.

 

 

 

 
For those of you who don’t know, the agreement implies capping their oil production voluntarily to make oil prices grow and let those oil producers make more money form their oil exports at the end of the day. However, the most interesting part is that the OPEC is going to announce some emergency measures if their American peers refuse to join the agreement in the near future. However, like I said before, American shale companies are not going to agree no matter what the cartel does.
 

At the same time, NordFX reports that the oil market was bullish yesterday. In particular, the Brent futures for December delivery were trading around $56,7/b earlier on Thursday. WTI gained some value as well

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According NordFX analysts, the price rally has been backed by Saudi Arabia’s announcement of future oil export cuts. Not so long ago, Saudi Aramco announced an intention to implement the biggest oil export cuts in history in order to push oil prices higher. They say the export cuts will reach 560K barrels a day. All in all, Saudi Arabia is planning to export 7,15 million barrels a day even though the demand is around 7,7 million barrels a day.
 
Some experts say there is no need to treat this announcement too seriously. Some of them say that it’s hard to call 7,15 million barrels a day a new record low since in July alone they exported 6,60 million barrels a day. That’s why they think that the export is going to grow after the summer decline. Other experts believe that the Saudis are trying to play with the market while getting ready for the next OPEC summit scheduled for November 30th in Vienna.
 
American Shale Companies’ Decision Matters
 
In 2017 and 2018, the OPEC expects an increase in the global demand for crude oil by 30K b/d. Given the fact that the forecasts are improving, the global demand is expected to reach 96,8 million b/d, which is +1,5% as opposed to 2016. They also expect the global demand to reach 98,19 million b/d in 2018.
 

 

It is interesting to note that, unlike the OPEC, independent observers don’t see any reasons for higher oil prices in the near future. Even the IMF revised their forecast by lowering the average expected price form $55 b/d down to $50 b/d. The Fund’s experts say that despite the OPEC+ agreement, oil prices are still under pressure because of the unexpectedly high production of shale oil in the United States. That said, if American shale companies decide to join the agreement, this may change the game.

 

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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

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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?

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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