Oil to remain flat

11 October, 2017

The oil price is set to remain stagnant over the next few years according to some analysts with the outside possibility that the price could tumble if Opec members fail to cooperate or production levels from the US continue to rise.

Oil production from the United States has risen 10 percent this year to more than 9.5 million barrels per day and they have no intention to go along with Opec and reduce supplies

“We don’t see big reasons for inventories to go down a lot from still high levels now. Hence we don’t see big reasons for prices to go up or down by much in 2018, and it’s similar for 2019,” said Jeff Brown, the president of consultancy Facts Global Energy.

Mr Brown also noted that Opec members will have to extend the current production cuts indefinitely, and a failure to do so could see the price of oil encounter substantial losses.

“OPEC doesn’t have an exit strategy. They need to continue to manage the market, or prices will drop a lot. If OPEC decides not to roll over, oil prices could easily could fall back into the $30s,” he said.

Oil could soon be traded in currencies other than the US dollar which will throw another round of uncertainty into the market, and according to Carl Weinberg, chief economist and managing director at High Frequency Economics, China and the Chinese yuan are set to be the main beneficiaries as the country buys more oil than any other.

"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it as the Chinese will compel them to do. Then the rest of the oil market will move along with them." Mr Weinberg said


Source link  
Pound may suffer in the long term

The British pound continues to power ahead in today's trading session after yesterday's developments in the British parliament that many see as ending...

Gold needs to remain above $1300

The gold price has staged a substantial rally since last week after the US Federal Reserve latest board meeting where they stated that any move...

Only way for oil is down

The oil price has now broken down through the all important $50 mark, which is a physiological blow to any chance of a rally, and according to...


D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...

Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...


Gold may finally Breakout

Gold is now on track to rack up its 5th straight day of gains on the back of geo political factors as well as expectations the US Federal Reserve may...

Will gold continue rally?

For more than 2 weeks now, the gold price has been on a steady uptrend after volatility in world stock markets, and in particular, the US market which...

Pound may be headed for parity

The market had been expecting such a move so all eyes were on the following monetary statement for signs of the US central bank's future moves...

  


Share it on:   or