Oil to remain capped at $50

6 September, 2017

The oil price is making another run for the $50 mark today over concerns about the damage that Hurricane Harvey has caused, but below it will struggle to break through this level as the disruption to supply is not as bad as first thought

RBC global head of commodity strategy Helima Croft noted that in the past, natural disasters like hurricanes had a bigger effect on the supply of oil as a larger portion of production came from the Gulf of Mexico

The amount of oil production now coming from the gulf is around 15 percent, well down from an earlier figure of 30 percent on the back of different production methods such as shale oil production,

"We think the developments for crude still look pretty bearish because of how many barrels are simply backing up with these refineries being offline," Croft said

"That's probably going to sort of cap whether or not WTI can break through $50 for a while, barring any sort of major outside catalysts." She added.

At around $50 a barrel, the big oil production companies won’t be too concerned said analysts at Goldman Sachs because at this price, oil is more profitable than it was at $100 due to reduced drilling costs and lower overheads,

“Simplification, standardization and deflation are repositioning the oil industry for better profitability and cash generation in the current environment than in 2013-14 when the oil price was above $100 a barrel,” they said


Source link  
Is Yen finished as a safe haven currency?

Along with the Swiss Franc, the Japanese Yen has historically been the other currency that the market has deemed a safe haven in times of financial instability...

Trump may drive down the oil price

The oil price has risen around 13 percent over the last 10 days which has pushed up gasoline prices in the US to uncomfortable levels and with elections...

Trade wars and risky currencies

Traders might be wise to avoid the riskier currencies and park their money into stronger one's such as the US dollar or Japanese Yen as the US gets ready...


Fed will dictate the gold price

After bouncing off a more than 6 month low in yesterday's trading session gold has continued to drift higher today, and some say for the precious metal to make...

Is gold loosing its safe haven status?

Gold maybe losing its status as a safe haven asset according to some analysts after failing to capitalize on recent events happening around the world...

Trump's moves may pressure oil

After hitting a 3 year high a little less than 2 weeks ago, the oil price has tumbled nearly 10 percent and things may be set to get worse as Saudi Arabia...


Gold receives a double boost

The gold price has received a significant boost over the past few trading sessions on the back of economic and Geo political developments which may...

Can gold finally breakout?

The gold price received a much-needed boost yesterday after disappointing data from the US hit the market which cast doubts over the state of the US economy...

Is gold stuck in a bear market?

The US dollar has been on a stellar run over the last few weeks against most of the major currencies and commodities such as gold, which is why...


In the past 24 hours Bitcoin has gained 0.69% and reached $7378.2. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.1166% and is now at $1.1665. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 8.79% and is now at $480.628. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: