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Sunday, 25 October 05:56 (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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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

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