Wednesday , July 28 2021

Although the potential OPEC cut, oil has been the lowest in a year



Although the potential OPEC cut, oil has been the lowest in a year

Jessica Resnik-Ault

Boston (Reuters): Oil prices fell by more than 6% on Friday on Friday, fearing supply gap due to major manufacturers cutting impact.

US Manufacturers-led oil supplies are growing faster than demand and in order to prevent the build-up of fuel used from emerging in 2015, the organization of petroleum exporting countries is expected to start harvesting after the December meeting. 6.

But there has been a slight decline in this price hike so far, which has cut more than 20% in November so far, which is in seven weeks's loss. Since the end of 2014 the prices were highest for one-month decline.

World's two largest economies and oil consumers, the trade war between the United States and China, has emphasized the market.

Chicago's Price Futures Group analyst Phil Flein said, "The market is worth the price in the economic downturn – they expect that Chinese trade negotiations will not work well." And its Chinese counterpart Xi Jinping at the G-20 summit in Buenos Aires.

Fly said that the market believes OPEC will be able to quickly reduce the demand for the next recession.

Brent crude fell by $ 3.13 a barrel or 5 percent to $ 59.47 an hour to close at 1:01 pm. EST (1801 GMT), after touching $ 58.41 earlier, has its lowest since October 2017.

US West Texas Intermediate Crude (WTII) was trading at $ 3.35 or 6.1 per cent down at $ 51.28, and earlier it touched a low of $ 50.53, which was the weakest since October 2017.

For weeks, Brent was on track for a decline of 11 percent and WTI 9.4 percent.

After China reported export of less than one year of gasoline in Asia and globally, due to poor demand, market fears have increased sharply.

With inventories in Singapore, gasoline stockpiles have increased in Asia, regional refining hubs have reached a three-month high, while Japanese stoppills have also increased last week. In the United States 7% more than a year ago.

Crude production has increased this year too. The International Energy Agency expects ON-OPEC output to grow 2.3 million barrels per day (BPD) this year, while the next year is expected to increase to 1.3 million BPD.

Adjusting the low demand, crude exporter Saudi Arabia said on Thursday that it could reduce the supply as it forces Opec to agree to the combined output cut of 1.4 million bpd.

However, Trump has made it clear that it does not want to increase the price of oil and many analysts think that Saudi Arabia is under pressure from the US, so that Opaque's other members oppose calls for low crude output.

Analysts say oil prices will improve if OPEC decides to cut production in its meeting next month.

"We hope Opec will manage the market in 2019 and evaluate the possibility of contract to reduce production around 2-in-3. In that scenario, Brent's prices will come back from 70," Morgan Stanley Commodity strategists Martinjean Rates and Emmy Sarge Customers to Note Wrote.

FxMM research analyst Lukeman Autunaga argued that if OPEC does not trim the product, the price can be very low, probably below $ 50 per barrel.

Volatility is up to 2-years from speech

By mid-November, commodity trading advisory funds tracked by Credit Suisse Prime Services reduced energy futures and increased volatility by 1.5 percent in the month.

Mark Coners, global head of portfolio and risk advisor at Credit Suisse, told Reuters this week that the action between macro and CETA funds reflects the risk-changing business, because net long positions end up almost half of the five-year high. Long and shorts

Volatility, the amount of investor demand for options has reached its peak by over 60%, by the end of 2016, because investors have come to buy protection against the sharp decline in prices.

Oil prices fall in US Energy stocks fall Oil companies of Axon Mobil Corp and Chevron Corp declined by more than 3% and the Dow Jones Industrial Average Oilfield Service Providers Slamburger NV and Holbrutan Company's leading procurers also dropped about 3%.

(Additional reporting by Christopher Johnson and Amanda Cooper in London, and Henning Glowstein in Singapore; edited by Amelia Sethol-Matruz and Marguerith Choy)

This story has not been edited by FirstPost staff and has been generated by auto-feed.


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