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Oil tank but OPEC is still bullish

When it comes to that World oil A market advantage, OPEC-Plus Russia believes that sharing is always great.

Saudi Arabia and United Arab Emirates Putting those differences aside, peace and harmony now reign in the OPEC Plus cartel.Recent turmoil market share Baseline production levels can break the unification of cartels, which have succeeded in reducing global supply and regaining control of the global oil market.

Gasoline price increases could stabilize soon

Therefore, after some big dramas last week, they seem to have finally reached an agreement. It’s not bearish on oil prices, after all, but it requires an additional amount of oil. In addition, there is less uncertainty surrounding the decision.

Ticker safety last Change change %
USO US Oil Fund LP 49.47 +0.30 + 0.61%

not yet, Oil on Monday is below $ 70 a barrel.

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The oil market did not like uncertainty, but knows that OPEC’s proposed amount of oil is barely enough to keep up with growing demand. You can see it very clearly in US oil inventories, which have fallen at a record pace in the last eight weeks. The cartel is having a great year as the prices go up. US energy producers are not responding.Cartels are also concerned about another wave coronavirus We also want to make sure that the market is closer to undersupply than oversupply in case demand suddenly declines due to new fluctuations in COVID-19.

Ticker safety last Change change %
BNO United STS Brent Oil FDLP Unit 19.08 +0.13 + 0.69%

OPEC also likes the growing power of being able to influence global economic growth and secretly enjoys returning to a position where global consumers have to plead for more oil production. increase.

So far, the United Arab Emirates has acknowledged that it plans to raise its baseline production level from 3,166,000 barrels per day to 3.5 million barrels per day. From August to December, the group decided to stick to the original agreement to add another 40,000 barrels a month, until it reaches 2 million barrels by the end of the year. Not only that, it decided to expand cooperation from the end of 2022. The group was scheduled to cease cooperation in April 2022. The group also adjusted the production levels of other members such as Russia, Kuwait and Iraq, and everyone could feel that they had a significant portion of the production pack.

Everyone thought it would be a rubber stamp, but when the UAE remained strong, fears of another production war global market that could lower prices began.

Another problem was that if the cartel succumbed to the UAE’s demands, other oil producers would also want a higher baseline. It could lead to more oil production than the cartel wanted to unleash in the global market.

OPECPlus-Russia now seems to live happily afterwards. Yeah, but what about everyone else? The US withdrawal to control fossil fuel production allows for a very real risk of future oil shortages. Ah, yes, OPEC is okay with the mistake of being too low in production, where consumers are already paying the highest gasoline prices they’ve seen in seven years.Diesel prices are soaring and hurt Small and medium-sized enterprises..

OPEC Plus is once again playing with the global economy, and it will probably become an oil consumer that will be lost.

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Phil Flynn is a Senior Energy Analyst at the PRICE Futures Group and a contributor to the Fox Business Network. He is one of the world’s leading market analysts, providing retail investors, professional traders and institutions with up-to-date investment and risk management insights into the global oil, petrol and energy markets. .. His accurate and timely forecasts are in great demand from industries and media around the world, and his impressive career dates back almost 30 years, with his market call and energetic personality as an energy report writer. Is attracting attention. You can contact Phil by phone (888) 264-5665 or email (888). pflynn@pricegroup.com..

Oil tank but OPEC is still bullish

Source link Oil tank but OPEC is still bullish

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