Opec deal no certainty

30 September, 2016

Opec deal no certainty

The oil price has continued to climb today, following on From yesterday’s gains after Opec agreed to production cuts in order to stabilize the price of oil.

At 9.14pm (GMT) crude oil was trading at $47.72c a barrel up from $47.01c in yesterday’s trading.

In a huge surprise to the market, members of the Opec cartel agreed to cut production by as much as 700,000 barrels a day with some predicting that this may be the start of a new upward trend for oil.

 “This could well be a significant turning point. Though the detail is to be worked through, the support from Opec will likely give more confidence to investors on medium to long-term prices, something that has been very much lacking over the last two years.” noted Michael Burns, an oil and gas partner at Ashurst law firm.

Others however see a long road ahead implementing the deal noting that previous agreements to cut production had fallen apart or some Opec members had found ways to bypass the output freeze.

There is also the threat from US drillers and especially if Trump becomes president as he has promised to make it easier to obtain land for new oil explorations that includes fracking which is limited at the moment.

“There is a lot of work that has to be done and the agreement could fall apart quite quickly. US shale is not going to go away and arguably Opec has made things worse because the companies that have survived are better placed for when the oil price goes up.” said Dougie Youngson, an analyst at the stockbroker Finncap.


Source link  
Great opportunity in the pound

The British pound is under pressure today as a British Prime Minister Theresa may attempts to strike a deal with the DUP...

Gold ready to rally again

The gold price is moving higher again today for the second day in a row as doubts linger on the Future of rate hikes...

Pound slumps on interest rate talk

The pound slumped to its lowest level today post-election, following on from yesterday’s losses after comments...


Euro has reached a top

The Euro has continued to tumble today, still reeling from yesterday’s bullish Fed speech and some believe that further losses are on the cards...

Its a good day for gold

The gold price has surged higher in late European trading today, travelling in the opposite direction of the US dollar as a round...

Gold could surge higher

The gold price is taking a breather today after making a run for the $1,300 level on the back of US dollar strength as traders...


Opec cuts won't work

The oil price racked up its fourth straight day of gains today after Saudi Arabia and Russia said a deal to cut production...

Pound awaits Fed decision

The British pound has come under pressure late in the European...

Gold tanks on French election

The gold price has pulled back sharply today after yesterday's French election results which saw both...

  


Share: