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The US elections have caused the increase in oil prices

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The US elections have caused the increase in oil prices

The US elections have caused the increase in oil prices
November 07
09:00 2016

The presidential elections in the United States have not taken place yet but the market has been feverish. As we remember, the oil prices fell to their lowest marks at the end of the last week (over the last 4 months).

Nonetheless, the week has begun optimistically – with a steady growth of oil prices. On the London Stock Exchange ICE Futures the price of January futures for Brent crude oil has risen to 0.9% – up to $ 46.01 per barrel (at 6:00 UTC). For the same period the futures price for WTI crude oil for December has grown by 1.1% – up to $ 44.56 per barrel during the bidding process on the New York Mercantile Exchange (NYMEX).

Contrary to the optimism associated with the forthcoming voting, we should note the preservation of negative fundamental factors. The number of drilling rigs in the USA continues to grow. Baker Hughes experts say that in the USA their number is currently equal to 450 units. The unambiguous growth of oil prices would cause the arrangement among the producing countries regarding the production decline. As the experts continue to doubt that such an agreement will be reached, then, for example, in less than a month Brent crude oil will fall by 15%. Meanwhile, OPEC continues a complex multilateral process of negotiations on the introduction of quotas for each member of the cartel.

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1 Comment

  1. Hillary
    Hillary November 28, 16:32

    How long will the market be feverish? What to do with the savings? And what should we wait in case of Trump’s victory? In reality, all the big funds and private investors initially develop two different strategies for each of the two options of the scenario. Thus, in the short term it is possible to earn, at first, on the collapse of quotations of risky assets due to the negative panic, and then on their recovery. It is as old as dirt, but it still works.

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