Report: Global oil prices are currently subject to the four determinants

Report: Global oil prices are currently subject to the four determinants



4/15/2017 0:00

Keep an eye out for the meeting of {OPEC} and will result in the results of the
capitals / follow - up to the morning
moving global oil prices during this period , according to several limitations , notably the amount of supply, stocks and rates of shale oil production, as well as the stability of supplies from oil -producing countries, since these factors will affect effectively in oil prices may be brought to the highest levels or tapering out to close to the bottom prices.
Monitoring has been an economic report issued by the "Financial Times", the factors that contribute to the renewed wave of sales of oil, which may limit the ability of benchmark Brent to withstand higher than $ 50 a barrel.
According to the report, these factors are determined by shale oil, "OPEC" agreement, inventories and demand growth and increased consumption.
Shale oil
recovered shale oil sector in the United States often overrun with prices of $ 50 a barrel, after two years of contraction Energy Information Administration expects the country 's production by 300 thousand barrels per day to 9.2 million barrels per day this year, to increase by about 500 thousand other during 2018.
the report indicated that the rapid recovery witnessed by the sector confirms that it has the ability to adapt to the large structural transformations.
"OPEC" agreement
has led "OPEC" agreement with Russia to achieve a rise in prices as the report points out that after the success of the organization in an agreement to cut production among its members and a number of independent producers such as Russia, prices rose in December, and then stabilized above 50 dollars during the first two months of this year.
The report adds: " It may have" OPEC "organization to extend the agreement to cut production, as analysts believe that stocks will begin to decline significantly during the second half, and may resort organization to agree on deeper production cuts in the near future , in the hope of strengthening the prices."
Meets "OPEC" in the twenty - fifth of next May to discuss the extension of production cut beyond the month of June, as observed, most of the Member States of the "OPEC" tend to this trend if agreement was reached with the other producers, sources "Reuters" said last month.
Stocks is
no doubt that oil stocks globally, especially in the United States, have a direct impact on oil prices, and some analysts see that inventories are decreasing in other parts of the world, but the US inventory data have had the greatest impact on the market.
Demand and consumption
expects "OPEC" demand growth by about 1.3 million barrels per day to 96.3 million barrels per day this year, according to the report.
The report also: "At the same time , electric vehicles continue to expand in the market, prompting many to warn of the consequences of this expansion and its impact on oil demand."
Bank analysts point "Morgan Stanley" that the traditional global car fleet by more than 40 million vehicles a year, which is equivalent to 600 thousand barrels of oil, along with it will continue to use aircraft, tankers and petrochemical industries , oil, enhanced consumption factor.


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