Oil may remain above $50

2 December, 2016

The Oil price continued to push higher today reaching its highest level in over a year with some predicting that the OPEC deal reached yesterday was a game changer and further gains are expected.

Oil has now jumped over 12 percent in the last 2 days to around $54 in today’s trading.

Sam Wahab, director of oil and gas research at Cantor Fitzgerald Europe, noted that yesterday’s agreement to freeze production may see oil remain above $50 for some time.

He also predicts that if a deal is also reached by non Opec members then this will be another blessing for oil,

“In 2017 will likely see prices around the $55-$60 a barrel mark, and we may yet see further jumps in prices as soon as next week if the non Opec members also agree a production cut at their meeting on Friday 9 December.” he said

Some however warn investors not to get too excited over the price rise and that the price of oil could reverse if a number of factors come into play,

 “I would not get too excited by the Opec cut. Compliance will be a problem, and the Russians will pump more gas instead. In the meantime, the long-run marginal cost of US shale continues to fall. I would not chase this oil price rally too hard.” noted Dominic Rossi, of Fidelity International.


Source link  
Higher inflation may benefit gold

Higher inflation in the US usually translates to rising interest rates which is usually negative for gold, as higher rates mean bigger yields which tends to leave...

Pound to fall as rates stay on hold

With all the uncertainty surrounding the UK at the moment such as political instability as well as the current Brexit negotiations that seem...

Oil at more than $150?

With the introduction of sanctions against Iran as well as a reduction in the development in new oil infrastructure, the chances for the highest oil prices in a decade is growing by the day...


Euro to remain subdued

After 3 straight days of gains the Euro has hit a wall against its US counterpart and according to one analyst the currency may remain subdued for some time...

Euro may be about to crash

The Euro has stabilized in today's trading session after suffering a big drop on Friday and the losses may continue to come as political instability grips the EU...

Gold in for a big week

It's going to be a big week for gold starting with tomorrow's meeting between US president Donald Trump and North Korean President Kim Jong Un which is followed by Wednesday's interest rate decision...


Gold may breakout this week

Over the last few weeks, the gold price has formed a solid base around the $1,290 mark and has pushed up through $1,300 several times before hitting resistance...

Gold to benefit if Trump acts

Gold is now trading higher for a 2nd straight day following on from Yesterday's interest rate decision from the Federal Reserve and some say the...

Dollar to continue its recent strength

It seems as if the market has finally woken up to the potential of the US dollar after the recent gains it racked up against most major currencies over...

  


Share: