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#Oil not pricing in #OPEC output rise to make up fall in Iran`s output - #ICICIsecurities
http://ow.ly/1h6T30jT5b9
#OilandGasSector #SectorReport
http://ow.ly/1h6T30jT5b9
#OilandGasSector #SectorReport
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What’s Behind The Oil Rally?
So... The oil market has been going crazy in the last few days. On Monday, the US West Texas Intermediate crude for June delivery rose nearly 1.5 percent to reach $70.73 per barrel on the New York Mercantile Exchange.
This has been its highest level since November 2014. And the funny thing about it? US crude production continues to grow steadily week after week. In fact, output levels are dangerously close to Russia - the world’s largest producer to date.
So… what everyone wants to know right now are the reasons behind the rally. And that’s not a single-factored movement, but instead a combination of four factors:
1- OPEC + Non/OPEC Output Cuts
Yes. The deal hasn’t changed much since it was first implemented back in 2017, but the 1.8-million-barrels-per-day cut has been doing well for itself. The agreement was renewed not long ago and it is expected to run until the end of this year.
According to a survey conducted by S&P Global Platts, OPEC’s production dropped in April to a one-year low with only 32 million barrels a day produced last month, down 140,000 barrels a day from the previous month.
2- Stronger Demand
And while supply continues to move down, demand is growing as never before. The International Energy Agency expects demand to reach 99.3 million barrels a day this year, up from 97.8 million barrels a day registered in the prior year.
3- Potential sanctions against Iran
Iran is a major producer of the Organization of the Petroleum Exporting Countries. Imposing new sanctions against it would immediately be reflected on further production cuts.
President Donald Trump said his decision on the Iran nuclear agreement will be announced today. Expectations are pointing at a pull out from the deal.
4- Venezuela crisis
Another report from S&P Global Platts said Venezuela output was at its weakest point in almost three decades. The economic crisis is not expected to improve any time soon and speculation continues to build up for an even worst scenario.
#Rally
#OilMarket
#OPEC
#Demand
#Trump
#Venezuela
So... The oil market has been going crazy in the last few days. On Monday, the US West Texas Intermediate crude for June delivery rose nearly 1.5 percent to reach $70.73 per barrel on the New York Mercantile Exchange.
This has been its highest level since November 2014. And the funny thing about it? US crude production continues to grow steadily week after week. In fact, output levels are dangerously close to Russia - the world’s largest producer to date.
So… what everyone wants to know right now are the reasons behind the rally. And that’s not a single-factored movement, but instead a combination of four factors:
1- OPEC + Non/OPEC Output Cuts
Yes. The deal hasn’t changed much since it was first implemented back in 2017, but the 1.8-million-barrels-per-day cut has been doing well for itself. The agreement was renewed not long ago and it is expected to run until the end of this year.
According to a survey conducted by S&P Global Platts, OPEC’s production dropped in April to a one-year low with only 32 million barrels a day produced last month, down 140,000 barrels a day from the previous month.
2- Stronger Demand
And while supply continues to move down, demand is growing as never before. The International Energy Agency expects demand to reach 99.3 million barrels a day this year, up from 97.8 million barrels a day registered in the prior year.
3- Potential sanctions against Iran
Iran is a major producer of the Organization of the Petroleum Exporting Countries. Imposing new sanctions against it would immediately be reflected on further production cuts.
President Donald Trump said his decision on the Iran nuclear agreement will be announced today. Expectations are pointing at a pull out from the deal.
4- Venezuela crisis
Another report from S&P Global Platts said Venezuela output was at its weakest point in almost three decades. The economic crisis is not expected to improve any time soon and speculation continues to build up for an even worst scenario.
#Rally
#OilMarket
#OPEC
#Demand
#Trump
#Venezuela
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#Crude #oil prices ended down about 2% on Tuesday (May 8), but off the lows for the day, after President Donald #Trump confirmed the #US will withdraw from the deal with #Iran to curb its nuclear program. Iran produces about 3.8 million barrels per day (bpd) and the country is the third-biggest producer among the #OPEC, behind Saudi Arabia and Iraq. Its production accounts for about 4% of the world’s oil supplies.
A majority of Iran’s exports currently go to #Asia, with #Europe receiving about 600,000 bpd. #Brent crude futures settled 1.7% lower at $74.85 a barrel while U.S.# WestTexasIntermediate (WTI) #crudefutures ended the session 2.4% lower at $69.06 per barrel. Trading volumes in both contracts rose, with about 1.2 million front-month WTI contracts changing hands, its busiest trading day since the OPEC agreement to cut output was struck on Nov. 30, 2016. More than 507,000 lots of front-month Brent crude futures changed hands, the highest since early February.
#Commodities #CommodityMarket #CommodityPrices #OilFutures #CrudeOil #CommoditiesTrading #OilIndustry #OilandGas #OilProduction #OilPrices #OilTrading #OilMarket #WTI #JCPOA
Oil recoups some losses after Trump pulls U.S. out of Iran nuclear deal
https://www.reuters.com/article/us-global-oil/oil-recoups-some-losses-after-trump-pulls-u-s-out-of-iran-nuclear-deal-idUSKBN1I902D
A majority of Iran’s exports currently go to #Asia, with #Europe receiving about 600,000 bpd. #Brent crude futures settled 1.7% lower at $74.85 a barrel while U.S.# WestTexasIntermediate (WTI) #crudefutures ended the session 2.4% lower at $69.06 per barrel. Trading volumes in both contracts rose, with about 1.2 million front-month WTI contracts changing hands, its busiest trading day since the OPEC agreement to cut output was struck on Nov. 30, 2016. More than 507,000 lots of front-month Brent crude futures changed hands, the highest since early February.
#Commodities #CommodityMarket #CommodityPrices #OilFutures #CrudeOil #CommoditiesTrading #OilIndustry #OilandGas #OilProduction #OilPrices #OilTrading #OilMarket #WTI #JCPOA
Oil recoups some losses after Trump pulls U.S. out of Iran nuclear deal
https://www.reuters.com/article/us-global-oil/oil-recoups-some-losses-after-trump-pulls-u-s-out-of-iran-nuclear-deal-idUSKBN1I902D
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Oil prices trading higher following increased risks over Iran and #OPEC cuts.
http://ow.ly/dtlE30jKrOE
http://ow.ly/dtlE30jKrOE
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#OPEC discipline, healthy demand likely to power oil rally through 2018: #Reuterspoll
http://ow.ly/xGHy30jKqLX
#OilandGasSector #ExpertViews #Commodity
http://ow.ly/xGHy30jKqLX
#OilandGasSector #ExpertViews #Commodity
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#Oil is back - priced above $USD 70 for the first time since 2014! http://ow.ly/QAze30jTSBA #Gasoline #OPEC #Russia #Venezuela #Iran #Trump #Economy #Jobs #Commodities #Canada #Keystone #GasPrice #Gold #Silver #Bullion #PreciousMetals #Hedge #Invest
Oil tops $70 for first time in four years on growing supply worries | Financial Post
business.financialpost.com
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On average, oil-directed rigs have risen by five rigs per week thus far in 2018. Due to the lag between rig count to prices, this average should rise in the months just ahead. ow.ly/4Pqw30jS0bw #Oil #OPEC
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