Here’s what happened: · On Friday last week, Brent Crude increased by 0.8% to just over $40 a barrel. · WTI Oil also increased by 1.7% to $38.50 per barrel. · According to the International Energy Agency, also known as the I.E.A, there are now signs of stability within the oil markets and also cautious optimism for price increases in the near future.
Have oil prices finally hit rock bottom?
Let’s look deeper into what’s going on with oil · Crude oil prices have plunged by 37% since May 2014 and even fell under $28 per barrel during the first month of this year. · Markets were over supplied during the last few years from a boom in U.S. crude oil production thanks to the popularity of fracking. · At the other side of the trade chain, China which is the world’s second largest commodities consumer significantly decreased their crude oil demand · But according to a report released by I.E.A on Friday, during February there was a reduction of oil output by 180,000 barrels per day from both OPEC and non-OPEC producers. · Given that the I E A is responsible for the coordination of the energy policies of oil producers, they estimate that the production from non-OPEC nations might fall by 750,000 barrels per day this year. · Meanwhile, in the United States, the world’s largest crude oil producer, it is also estimated to cut supply during 2016 by 530,000 barrels per day.
So what is next for oil? · Again, the I.E.A sees the oil market heading towards some long-awaited stability by 2017. · And demand in China might grow by 330,000 barrels per day. · Regardless of what happens, we’re likely to see continued volatility within the crude oil markets, and that is great news for short term traders looking to take advantage of sudden price moves.
· Also, don’t forget Later today, we’ll be looking out for Crude Oil inventories due today at 14:30GMT
Other market-moving announcements to keep an eye on this week include: · The FOMC Statement later today at 18:00 GMT. · On Thursday the Bank of England Meeting announcement comes out at 12:00 GMT
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this week’s hot topic is Oil.
Here’s what happened:
· On Friday last week, Brent Crude increased by 0.8% to just over $40 a barrel.
· WTI Oil also increased by 1.7% to $38.50 per barrel.
· According to the International Energy Agency, also known as the I.E.A, there are now signs of stability within the oil markets and also cautious optimism for price increases in the near future.
Have oil prices finally hit rock bottom?
Let’s look deeper into what’s going on with oil
· Crude oil prices have plunged by 37% since May 2014 and even fell under $28 per barrel during the first month of this year.
· Markets were over supplied during the last few years from a boom in U.S. crude oil production thanks to the popularity of fracking.
· At the other side of the trade chain, China which is the world’s second largest commodities consumer significantly decreased their crude oil demand
· But according to a report released by I.E.A on Friday, during February there was a reduction of oil output by 180,000 barrels per day from both OPEC and non-OPEC producers.
· Given that the I E A is responsible for the coordination of the energy policies of oil producers, they estimate that the production from non-OPEC nations might fall by 750,000 barrels per day this year.
· Meanwhile, in the United States, the world’s largest crude oil producer, it is also estimated to cut supply during 2016 by 530,000 barrels per day.
So what is next for oil?
· Again, the I.E.A sees the oil market heading towards some long-awaited stability by 2017.
· And demand in China might grow by 330,000 barrels per day.
· Regardless of what happens, we’re likely to see continued volatility within the crude oil markets, and that is great news for short term traders looking to take advantage of sudden price moves.
· Also, don’t forget Later today, we’ll be looking out for Crude Oil inventories due today at 14:30GMT
Other market-moving announcements to keep an eye on this week include:
· The FOMC Statement later today at 18:00 GMT.
· On Thursday the Bank of England Meeting announcement comes out at 12:00 GMT