FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Investor Sentiment Improves and Oil Prices rise


14 December 2021

Oil prices rose further on Monday as investor sentiment improved amid growing optimism that the Omicron coronavirus variant will not cause severe harm. Therefore it will have a limited impact on global fuel demand. Brent futures were up 72 cents, or 1.0 percent, to $75.87 a barrel. Following a 1% increase the previous session, the price of West Texas Intermediate (WTI) crude oil in the United States increased by 85 cents, or 1.2 percent, to $72.52 per barrel.

Last week, both benchmarks gained about 8%, their first weekly gain in seven weeks. They have recovered more than half of the losses sustained since the first Omicron headlines appeared on November 25. Officials announced plans to roll out vaccine boosters as daily infections approached an all-time high. South African scientists said on Friday that they see no evidence that the Omicron variant is causing more severe harm. 

At their next meeting in January, investors keep a close eye on OPEC+. They agreed to maintain their current monthly oil output increase policy earlier this month. On Sunday, Iraq’s oil minister stated that OPEC’s current gradual monthly supply increases of 400,000 BPD would maintain at the group’s next meeting. As part of an earlier plan to reduce gasoline prices, the Department of Energy has announced that it will sell 18 million barrels of crude oil from its strategic petroleum reserve (SPR) on December 17.

On Sunday, the world’s largest oil exporter, Saudi Arabia, forecasted 2.9 percent GDP growth this year and a 7.4 percent growth in 2022. The kingdom does not disclose the oil price it uses to calculate its budget. Still, Monica Malik estimated it was likely basing its 2022 budget on an oil price assumption of 50-55 per barrel.

Carbon Markets

Energy companies in the United States are urging states to accelerate the development of low-carbon fuel markets. They warn that numerous proposed projects to produce renewable natural gas and other biofuels may fail. As a result, the price of credits that refiners and other polluters can generate has plummeted. This made it less likely that companies will invest in additional production facilities in the coming years. The incentives can be profitable for their businesses. Hence, almost every independent petroleum refiner in the United States has announced plans to produce fuel from waste and vegetable oils. Renewable diesel will account for approximately 7% of the total diesel pool by 2030, up from 5% currently.

However, according to California’s Air Resources Board, the price of LCFS credits in California has dropped nearly 30 percent in the last two months. It went below $145 per metric ton of carbon. Due to rising renewable diesel sales, refiners plan to increase fuel output. 

#source

Share:


Related

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022
NordFX: Forex and Cryptocurrencies Forecast for September 19-23, 2022

The World Bank said last week that risks of a recession in 2023 are growing amid simultaneous tightening of monetary policy by the world's leading Central banks and the energy crisis in Europe...

19 Sep 2022

Gold gains traction on the back of weaker dollar
Gold gains traction on the back of weaker dollar

The precious’ recent rally from its near year-to-date lows could be attributed to the broader dollar weakness observed in the past week, even though it remains elevated near its 20-year highs...

14 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.