On the 24th of December 2015 oil prices climbed higher than “$38 a barrel” but shortly after that the prices retreated, whereby keeping the price range “within sight of an 11-year low” in this week. Consequently, traders “put positions in order” expecting a “low liquidity” week ahead.
In the midst of “falling inventories”, the U.S has gathered support, as it brought down drilling and lifted “a ban on most U.S. crude exports”. Likewise, for the first time in this year, the U.S. crude has been pushed to “a premium to global benchmark Brent”. Moreover, Reuters informs:
“Brent LCOc1 settled up 53 cents at $37.89 a barrel as of 11:48 a.m. EST. It fell to $35.98, an 11-year low, on Tuesday. U.S. crude CLc1 settled up 60 cents at $38.10 after gaining more than 8 percent this week”.
While, the Managing Partner at the “Tyche Capital Advisors”, Tariq Zahir, said:
"Some traders playing spot on the downside are getting out and calling it a year. .
Fundamentals are in support of the futures of the U.S. crude whereby the “ban on crude exports”, for a period of forty years, has been lifted, to which the Petromatrix’ analyst, Olivier Jakob remarked:
"The lifting of the ban on U.S. exports will provide some underlying support for U.S. crude. Oil demand in 2015 was exceptionally high and at current prices, demand is going to remain strong next year”.
"For now, there is still an ample supply of crude and a huge amount in storage."
According to the traders of Brent the London market remained “quiet” as many “participants” were busy enjoying their Christmas holidays.
Last week crude “gained support” in the U.S, whereby Crude inventories, that were “expected to rise”, came hurling down by “5.88 million barrels”, informed the “Energy Information Administration”.
As per the reports submitted by Baker Hughes, in the last six weeks time, this is the fifth time that the “U.S. oil drillers cut rigs”, reflecting the fact that “low prices” are “curbing activity and could slow output”.
Brent has reduced by fifty percent, while only eighteen months ago, the prices were “more than $100 a barrel”. The reduction was caused by a pressure created from a “supply glut that according to OPEC figures exceeds 2 million barrels per day”.
However, analysts are expecting to see smaller glut in the coming year for the demand of the world is on the rise and the “price collapse leads to lower output from some countries outside OPEC”. Nevertheless, OPEC has not yet showed any sign that it is “prepared to lower its supply - which is likely to rise when sanctions on Iran are lifted”.
References:
http://www.reuters.com/
In the midst of “falling inventories”, the U.S has gathered support, as it brought down drilling and lifted “a ban on most U.S. crude exports”. Likewise, for the first time in this year, the U.S. crude has been pushed to “a premium to global benchmark Brent”. Moreover, Reuters informs:
“Brent LCOc1 settled up 53 cents at $37.89 a barrel as of 11:48 a.m. EST. It fell to $35.98, an 11-year low, on Tuesday. U.S. crude CLc1 settled up 60 cents at $38.10 after gaining more than 8 percent this week”.
While, the Managing Partner at the “Tyche Capital Advisors”, Tariq Zahir, said:
"Some traders playing spot on the downside are getting out and calling it a year. .
Fundamentals are in support of the futures of the U.S. crude whereby the “ban on crude exports”, for a period of forty years, has been lifted, to which the Petromatrix’ analyst, Olivier Jakob remarked:
"The lifting of the ban on U.S. exports will provide some underlying support for U.S. crude. Oil demand in 2015 was exceptionally high and at current prices, demand is going to remain strong next year”.
"For now, there is still an ample supply of crude and a huge amount in storage."
According to the traders of Brent the London market remained “quiet” as many “participants” were busy enjoying their Christmas holidays.
Last week crude “gained support” in the U.S, whereby Crude inventories, that were “expected to rise”, came hurling down by “5.88 million barrels”, informed the “Energy Information Administration”.
As per the reports submitted by Baker Hughes, in the last six weeks time, this is the fifth time that the “U.S. oil drillers cut rigs”, reflecting the fact that “low prices” are “curbing activity and could slow output”.
Brent has reduced by fifty percent, while only eighteen months ago, the prices were “more than $100 a barrel”. The reduction was caused by a pressure created from a “supply glut that according to OPEC figures exceeds 2 million barrels per day”.
However, analysts are expecting to see smaller glut in the coming year for the demand of the world is on the rise and the “price collapse leads to lower output from some countries outside OPEC”. Nevertheless, OPEC has not yet showed any sign that it is “prepared to lower its supply - which is likely to rise when sanctions on Iran are lifted”.
References:
http://www.reuters.com/
