#Brentcrude

[jobaaj]

Oil prices have crashed! Crude oil prices started June with a meltdown as the Brent Crude tumbled over 4% in a single session! Bearish pressures remained strong as the Brent Crude fell to its lowest level in 4 months! But why?

The underlying reason stems from concerns related to the global supply of oil. Recently, the OPEC+ oil cartel, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, made a significant decision. They agreed to extend their voluntary reductions in oil production all the way through 2025.

Normally, such a decision would be expected to lead to a rise in oil prices, as reduced supply typically drives prices up.

However, in this case, the anticipated increase in prices did not materialize. This is because OPEC+ also announced that they would begin to phase out these production cuts starting in October of this year, signaling a future increase in supply that tempered any potential price hikes.

According to the detailed production plan released by Saudi Arabian officials, there is a projected significant increase in oil output over the next couple of years. By December 2024, the daily oil production is expected to be more than 500,000 barrels higher than the current level.

Furthermore, this increase is set to continue, and by the middle of 2025, the daily output is anticipated to be nearly 1.8 million barrels higher than it is today. This substantial rise in production highlights Saudi Arabia's commitment to adjusting its oil supply in response to global market conditions.

Faltering demand from China, the world’s top oil importer, combined with the persisting high-interest rate conditions and increase in oil inventory by other countries were already pushing prices down. While the planned phase-out could be reversed depending on the market conditions, this announcement, which was fundamentally bullish for the commodity, sent oil prices down. When reporting, the Brent Crude was trading at around $78.160/bbl. Follow ProCapitas for more financial insights.

[gqresearch24]

OPEC+ Virtual Meeting To Review Production Policy

(Source – Energy Intelligence).

OPEC+ will convene virtually on Sunday to assess its current oil production strategy. As the global oil market keenly awaits the coalition’s decision, several OPEC+ members continue to withhold 2.2 million barrels per day from the market in a bid to bolster prices. This strategic move comes as market analysts predict that OPEC+ will likely uphold its existing production policy, maintaining stability in the oil market.

Voluntary Production Cuts to Support Prices

The decision by OPEC+ members to voluntarily reduce oil output by 2.2 million barrels per day is a calculated effort to sustain oil prices amid fluctuating market dynamics. By restricting supply, these nations aim to prevent a surplus that could drive prices down. This approach is particularly significant as it reflects the coalition’s proactive measures to stabilize the market, ensuring that oil prices do not fall below a level that is economically viable for their economies.

Michael Hsueh, an analyst at Deutsche Bank, highlighted the current market sentiment by pointing out that the price of Brent crude, hovering closer to $80 per barrel, suggests that OPEC+ is unlikely to increase production in the near term. “Given the current price levels, it wouldn’t be surprising if OPEC+ maintains its cautious stance to avoid flooding the market with excess supply,” Hsueh noted.

Tamas Varga, an analyst with oil broker PVM, echoed similar sentiments, stating that the virtual nature of the upcoming meeting further reduces the likelihood of any production changes. Varga emphasized that the virtual format typically lends itself to maintaining the status quo rather than making significant policy shifts. As such, the market is largely anticipating a continuation of the current production policy, aligning with Deutsche Bank’s forecast of Brent crude prices averaging $83 per barrel in the second quarter and $88 in the latter half of the year.

Market Reactions and Future Outlook of OPEC+

The anticipation surrounding the OPEC+ meeting has already impacted the market, with U.S. crude oil prices rising nearly 3% on Tuesday following a previous week’s loss. This uptick underscores the market’s focus on OPEC+’s decisions and the broader implications for global oil prices.

However, analysts like Hsueh warn that OPEC+ may face increasing pressure to adjust its production strategy after the June meeting. Should the coalition opt to increase output, it could potentially drive Brent prices below the $80 per barrel mark. This possibility looms as a critical factor for OPEC+ members, who must balance their production levels to sustain favorable price points without triggering a market imbalance.

Hsueh also pointed out the long-term considerations for Saudi Arabia and other major oil producers within OPEC+. Maintaining a target price significantly above the breakeven point for the broader U.S. oil sector, which stands at approximately $75 per barrel, may prove unsustainable. The stabilization of U.S. oil production since September has provided OPEC with a degree of flexibility, allowing the coalition to carefully calibrate its production levels without risking an oversupply that could depress prices.

In conclusion, the OPEC+ virtual meeting on Sunday is poised to play a pivotal role in shaping the near-term outlook of the global oil market. As the coalition deliberates on its production policy, the decisions made will reverberate through the industry, influencing price trends and economic stability for oil-producing nations. Market participants will be watching closely, prepared to respond to any signals of change or continuity from this influential group.

[usnewsper-business]

Oil Prices Drop as OPEC's Cuts Face Doubt: Can They Fix Oversupply? #Brentcrude #oilprices #OPEC #oversupply #productioncuts

[kissanfuel]

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[tradermade]

Oil prices rally! Explore: https://markets.tradermade.com/commodity/crude-oil-gains-on-a-bullish-trend. Stronger US fuel demand & supply concerns fuel the surge. #BrentCrude near $82.88, #WTI Crude at $78.50. Eyes on OPEC+ meeting next!

[tradermade1]

The UK Government is all set to expand UK's North Sea drilling by announcing new oil and gas licenses, focused on energy independence and economic growth for generations. https://tradermade.com/cfd-live-prices/UKOIL. Stay tuned with the Brent Crude in the CFD Markets to make informed decisions.

EnergyIndependence #EconomicGrowth #CFD #TraderMade #BrentCrude

[reportwire]

BizToc

Stock futures fell early Monday as social unrest from China's prolonged Covid restrictions weighed on markets, sending oil prices lower — after Wall Street notched gains during the Thanksgiving holiday-shortened week. Futures tied to the Dow Jones Industrial Average lost 178 points, or 0.52%. S&P… #futures #crudefutures #carmenreinicke #brentcrude #thanksgivingholidayshortened #dowjones…

[jobaaj]

Oil prices are recovering! After a sharp decline since April’s peak, there are signs that oil prices may be on the mend. Brent Crude is now on a three-day winning streak.

But why? Due to falling supply and growing demand. Supply side, US crude inventories decreased by 1.4M barrels last week, according to the US Energy Information Administration (EIA). Last week, US crude inventory was 7.26M barrels higher than it was two weeks ago. At only 459.5 million barrels of crude, the US oil stockpile was 3% below the standard five-year average, indicating tighter supplies in the US market. On the demand side, China’s economy has seen a significant recovery. Trade activity has rebounded as exports jumped 1.5% in the latest month while imports boomed 8.4%. China’s oil imports improved by 5.45% in April to 10.88 million barrels per day!! Since China is the world’s largest oil importer, a rebound in its economic activity will positively impact oil demand! Finally, tensions in the Middle East have flared up recently as Israel launched its assault on Rafah, sparking concerns in the region once again, thus pumping oil prices up once again. When reporting, the Brent Crude was trading at around $84.913/bbl. Follow ProCapitas for more financial insights.

[investing-solution]

#Commoditymarket decoded

Crude oil prices in the domestic market are running at an all-time high!

[usnewsper-business]

OPEC Meeting to Cut Oil Production, Boosting Prices #Brentcrude #globaloilprices #oilprices #OPECmeeting #productioncuts

[kissanfuel]

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[tradermade]

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[commoditytipsindia]

[pramodgapat]

Global Indices #SGX Nifty: 11146 +46 #Hangseng: 24888 +178 #Dow: 26313 -226 #S&P500: 3246 -12 #Nasdaq: 10587 +45 #USD / #INR: 74.62 #BrentCrude: 43.34 #GOLD: 1959.27 FII Net (30-07-2020): +207.30 https://www.instagram.com/p/CDSlqANH5CL/?igshid=chreowf5hih