Showing posts with label oil trading. Show all posts
Showing posts with label oil trading. Show all posts

Wednesday, December 9, 2015

Oil Prices Tumble to Five-Year Low as OPEC Gathers in Vienna


Oil Prices Collapses to Lowest Level in Five Years

As OPEC leaders meet in Vienna to set the prices for the year ahead, oil prices have collapsed to the lowest level in five years. After the US stockpiles flowed in November, Brent crude for January delivery dropped by 3.7% to $42.77 per barrel in London. US Energy Information Administration shocked the market, which had hoped the level of oil to drop during winter, by reporting that the glut of oil in America had increased by 1.2m barrels till November 27 to reach 489.4m barrels thus approached its highest level on record.

In the meanwhile, weak inflation report from Eurozone raised the possibility of the European Central Bank launching a new round of motivation sending the dollar to its highest level over 12 years. Besides this it also weighed on the oil price as the greenback is utilised to price the product.

The oversupply of crude oil due to its strong production from the U.S. together with some of the OPEC members, has been keeping the prices over 45% less than their highs from last June. Several of the investors as well as the analysts are of the belief that the global oil surplus would shrink in the coming months as demand increases and U.S. production falls in reaction to spending cuts.

Output Level Crossed its Quota of 30M Barrel/Day

In the meanwhile, market watchers are of the opinion that world-wide crude output tends to continue exceeding the consumption. The July delivery of light sweet oil, recently feel by $1.64 to $58 per barrel on the New York Mercantile Exchange. The global benchmark Brent fell $1.77 to $62.03 per barrel on ICE Future Europe.

 In its last meeting, OPEC which had opted against reducing production inspite of plunging oil prices is expected to stick to that policy. The group’s output level had already crossed it quota of 30 million barrels per day. According to government reports, the output is near multi-decade in Iraq, Russia, Saudi Arabia and the U.S. Additional Iranian crude would probably enter the market this year, if on-going negotiations with Iran would result in a lifting of sanctions.

Senior market strategist at Chicago brokerage iiTrader, Bill Baruch has stated that `Russia’s picking up production, the U.S. is picking up and there seems to be no reason why OPEC would hold back from picking up production. We could see prices below $50 by the end of this month’.

Shale-Oil Production to Rise in the Coming Years

The Chief Executive of ConocoPhillips, Ryan Lance had mentioned in a conference ahead of the OPEC meeting that U.S. shale-oil production would rise in the forthcoming years as drilling would get cheaper and more efficient. He stated that the industry had already cut the price wherein it could profitably produce shale oil by 15% on an average and by 2020; shale oil production could become 15%-20% more efficient.

In the U.S., some of the shale-oil producers state that if prices tend to stabilize above $60 a barrel, they could increase the production. Several times recently, the U.S. benchmark had traded above $60 a barrel though had not held above it. John Saucer, vice president of research and analysis at Mobius Risk Group in Houston, had stated that the `OPEC was successful in shaking out high cost inefficient guys who did not make any cash at $100 and those left were certainly leaner, meaner and more efficient’.

Thursday, March 7, 2013

Oil Trading!

Oil is a raw material which is now become increasingly rare and therefore sought, and usually one of the most requested asset from traders and especially those who have chosen trading options: in fact, the oil and news often pair; one does not go without the other. Because oil is owned by a small handful of states producing together under the name OPEC, any event that happens in one of these states has a direct impact on the price of oil which then sees his current fluctuations through the world. The investment in oil drilling reached a record high in 2012, and the number of offshore projects got momentum. Meanwhile, the oil services industry regains its record levels of activity in 2009 in all segments: geophysics, drilling, offshore construction. United States, fracturing (used to exploit shale gas) focused $ 50 billion investment, or 20% of total drilling investments in the world.

This dynamism intensified competition strong among Chinese and Korean companies on these activities. In refining, the contrast is widening between Europe and the United States, where production capacity stagnated and Asia / Middle East which concentrate 80% of refinery projects. IFP expects a price of about $ 100 per barrel in 2013, after an average of $ 110 in 2012, but rising oil prices could resume in case of war with Iran or Syria. Oil Trading carries many benefits. More reports are available to traders to understand the market trends. These include among others, regular publications and the reports and forecasts of oil producing countries. In addition, this type of trading provides benefits up to 100%. Thus, this sector presents a great risk control.

It allows a diversification of investment returns. Finally, you can access many online brokers very easily. Investing in oil can be a good start in binary options. It does not necessarily have previous experience significant knowledge. However, to successfully accumulate profits, place heavy investment and long term. Oil trading is the fastest way to get gains. So it is up to you to make the appropriate choice for binary option bonus from the asset.