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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    Oil prices end the week lower

    Rocky
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    • Post n°1

    Oil prices end the week lower Empty Oil prices end the week lower

    Post by Rocky Sat 09 Jun 2018, 3:27 am

    Oil prices end the week lower





    2018/06/09 10:56

    (Encyclopedia of this Day News | Iraq News ) - Economy

    Since 2018-06-09 at 10:26 (Baghdad time)


    Follow up of Mawazine News

    Oil prices ended the week lower, with US crude oil output increasing and weekly increases in US stocks, as well as expectations that OPEC and producers outside the country would curb production restraints agreed since 2016.

    London Brent crude <LCOc1> fell by a full percentage point to $ 76.57 a barrel, while US light crude <CLc1> fell nearly half a percentage point to $ 65.63 a barrel.

    JP Morgan, the investment bank, issued a note Friday reviewing its estimate of oil prices this year by a reduction, citing mainly increased US crude production as the production platform increased steadily.

    Brent crude prices are expected to remain around $ 70 for 2018 (averaging $ 69.30 a barrel), but have lowered expectations for US light crude below $ 65 a barrel ($ 62.20 per barrel).

    The US Energy Information Administration announced Wednesday evening a significant increase in commercial stocks by more than 2 million barrels (2.1 million barrels for the first week of June) against market expectations of withdrawal from the stock by about the same amount.

    US crude production rose to 10.8 million bpd, higher than the International Energy Agency's estimate of US crude production of 10.7 million bpd this year.

    Pressure on prices is also compounded by market expectations of increased production of producers and exporters from the Organization of Petroleum Exporting Countries (OPEC) and beyond, after Russian and Saudi comments in recent days hinted at a possible easing of the supply control mechanism.

    Investors in the oil market are now focused on Moscow, specifically the opening match of the 2018 World Cup between Russia and Saudi Arabia on June 14 at the Luzhniki Stadium in the Russian capital.

    The Bloomberg news agency reported a meeting between Russian President Vladimir Putin and Saudi Crown Prince Prince Mohammed bin Salman on the sidelines of the opening match, which is expected to be attended by the two leaders, but this was not confirmed officially from Moscow or Riyadh.

    In the event of the meeting, it comes a week before the OPEC meeting in Vienna to discuss the market situation and the equation of supply and demand.

    OPEC had reached an agreement with producers from outside, led by Russia about two years ago to cut production by 1.8 million barrels per day, to withdraw the excess supply in the market.

    Saudi Arabia (OPEC's largest producer and exporter) and Russia (the largest producer and exporter of non-OPEC) bear the brunt of the mechanism.

    According to the oil ministers of the two countries during the past two weeks, there seems to be a trend to ease commitment to the mechanism with what appears to be a balance in the market in terms of supply and demand.

    An additional 1 million barrels per day would push the price down, especially as the US oil production continues to increase, which is already sufficient for domestic demand and even exported.

    But energy market analysts do not expect a sharp fall in prices, which was also severely hampered in the summer of 2014, when crude fell from over $ 100 a barrel to just over $ 30.

    Despite the increase in US production and the likelihood that most OPEC members and partners will return to the market, important supply-side factors are maintaining market equilibrium.

    Perhaps the most important factor is the deterioration of the situation in Venezuela, where the oil production of this country has steadily declined since the onset of the political crisis last year, and the economic crisis was compounded by more US sanctions.

    If we add production problems in Nigeria, the decline in the output of the two countries could be almost equivalent to what could be added by the easing of the mechanism of OPEC and Russia to control the supply.

    Even with the uncertainty of OPEC producers' remaining commitment to production quotas, US sanctions on Iran would limit Tehran's ability to produce its full quota under Opec agreements.


    The opinions expressed below do not reflect the opinion of Mawazine News, but reflect the views of their respective owners only.









    Note: The content that is entitled (Oil prices end the week of trading down) published first on the site (Mawazin News) and does not bear the encyclopedia of this news day included in any form. 
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