Crude Oil Weekly Price Forecast - Crude markets break out

Brent crude could hit new 2019 highs Goldman Sachs analysts say

"On the supply side, the production losses to start 2019 remain large with core-OPEC producers adopting a "shock and awe" strategy and exceeding their cut commitment", the bank added.

Crude oil prices rose 0.3 per cent to Rs 4,073 per barrel on March 15 as speculators created fresh positions amid positive cues from global markets.

Bloomberg reported that U.S. President Donald Trump and Chinese President Xi Jinping may not meet until April at the earliest, after the Wall Street Journal said this month that Xi and Trump could meet around March 27. This led to the US taking a number of steps in the 1980s to take away OPEC's monopoly in determining oil prices, and the USA has strengthened global commodity markets with Chicago and NY.

An unexpected dip in USA crude oil inventories and production supported prices, traders said.

"OPEC's compliance was a robust 94 percent, compared to 51 percent from non-OPEC", said the IEA, adding that major producer Russian Federation was continuing to adjust its production gradually.

However, some market participants are calculating a fleeting boost in global demand that may result from a potential resolution of the U.S. We will observe the economic-political consequences of the USA cornering Saudi Arabia, Iran and Venezuela in the global oil game.

"With OPEC's cuts in full swing. persistent supply issues and a deteriorating picture on Venezuela, oil is looking well supported", said Jasper Lawler, head of research at futures brokerage London Capital Group. But the agency said there are a number of factors that could blunt the i the loss of Venezuelan oil on the global oil market.

IEA President Fatih Birol, whose remarks were included in the report, said that there might be extraordinary changes in the global oil industry in the future and that the US would continue to influence the global oil market over this five-year period.

Venezuela's oil production has taken a serious hit in recent years falling from approximately 2.4 million barrels a day (bpd) in 2015 to around 1.2 million bpd, as of the latest figures in February.

Futures advanced 4.4 per cent this week in NY and settled Friday just pennies off a four-month high, reported Bloomberg.

The IEA, which coordinates the energy policies of industrialized nations, kept its forecast of growth in global oil demand this year unchanged at 1.4 percent, or 1.4 million barrels per day (bpd). Production in Iran and Libya, also exempt, was little changed.

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