Temporary tranquility on the oil market

Posted 05 January, 2017

Current situation on the market demonstrated confidence and stability, against the background of the US stocks decline. Thus oil received the necessary support after that there were doubts that manufacturers do not actually going to reduce volumes of production, to affect the global oversupply. In the morning trading European standard Brent fell by $0.15 a barrel to $56.30. North American WTI fell by $0.10 to $53.15 per barrel.

Late last year, OPEC and other major oil producers in the world agreed to reduce production volumes and get rid of the global oil oversupply on the market, which is observed for more than two years. Experts from the Singapore Exchange are worried about the issue of OPEC and its repeated non-compliance of contracts. "Now very few are expecting the implementation of all agreements. More than half of respondents believe that prices will remain in the range of $50- $60 per barrel", - they say.

Analysts from the Goldman Sachs believe that if OPEC nevertheless reduce production, as promised, the price dynamics will be a slight upward. Yesterday there were published data from the US by API, which showed a decrease in reserves to 7.4 million barrels. Reuters survey at today's weekly data from the EIA shows a decrease in oil reserves by 2.2 million barrels.

Previous story

05 January, 2017 15:30

← Rockefeller Treasury Services, Inc. Analytics | 5 of January

The Fed may be shooting itself in the foot. The minutes reported that “about half” of the members see potential expansionary fiscal policies as the biggest upside risk to their forecasts, but a gradual pace of hikes is still the appropriate path until we have hard facts. Uncertainty is very high.

Rockefeller Treasury Services, Inc. Analytics | 5 of January

Next story

04 January, 2017 15:00

Rockefeller Treasury Services, Inc. Analytics | 4 of January →

All the major countries are getting more growth and more inflation than anyone predicted last fall. The US had already built some momentum, but analysts were still fretting about a return to recession as recently as last September. It was not until the Fed hike in December that the word “recession” got taken off the table.

Rockefeller Treasury Services, Inc. Analytics | 4 of January
Write a comment
Prove you’re not a bot + 16 = 34