Stock market quotes, forex, financial news, forex tools –

This is a short-lived paradise. Oil is getting cheaper again.

 Breaking News
  • The intensification of the conflict between the USA and China leads to reduction of oil prices The energy market has started the trading session rather unsuccessfully. The next round of the trade war between the States and China caused the price fall. Because of this investors...
  • Germany saves Lufthansa An air carrier Deutsche Lufthansa AG has suffered losses because of the spread of the coronavirus pandemic. It became known that the German government had not left the matter unattended...
  • Israel economy sets anti-records Israel is a recognized high-tech paradise, a stable and strong platform for business development. However, the economy of the country in the Middle East has failed to resist the consequences...
  • A car rental service Hertz went bankrupt Hertz, the largest US car rental company, has filed for bankruptcy. The company was founded already in 1918. For a hundred years, Hertz has coped with the Great Depression, the...
  • Monday starts with the growth of oil prices The energy market started today’s trading session with the steady growth. Quotes are increasing on the signals about the recovery in demand and a decrease in production in the States....
This is a short-lived paradise. Oil is getting cheaper again.
July 04
08:00 2017

Oil prices have been rising for eight consecutive sessions. And today we see a decline in quotes for black gold.
Brent is being currently traded on the London Stock Exchange ICE Futures for $ 49.4 per barrel (the decline equaled $ 0.28 or 0.56%). As for WTI crude oil, the August futures price on the New York Mercantile Exchange NYMEX dropped to $ 46.83 per barrel ($ 0.24 or 0.51%). In general, oil price showed a decline of about 14% for the first half of 2017. The main reason is the broken balance of supply and demand in the energy market. The market is worried that even the OPEC countries’ agreements on limiting production are not able to restore the lost balance.
The last week increase in oil prices was caused by a decrease in the number of operating drilling rigs in the United States. In addition, the US Department of Energy released the information on the reduction of national oil production by 100,000 barrels per day.
Perhaps the decline is due to the natural disaster in the Gulf of Mexico. However, some analysts believe that the hurricane is beside the point and the decline is caused by the planned reduction in extraction and production in the United States.
Despite the agreements reached by the OPEC countries, June turned out to be the record month for oil production in 2017. This is due to the fact that Libya and Nigeria (not participating in the agreements on the reduction of production) significantly increased oil production.
Most likely, oil prices will continue to fall in the near future. The balance between production and consumption should not be expected quickly.


The material was prepared with the participation of  Andrey Majorov,
a leading analyst of the brokerage company CT Trade

Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment