Oil markets are collapsing.
US benchmark West Texas Intermediate (WTI) crude oil closed Friday's session at $ 50.42, down $ 4.21 or 7.7%. It hasn't been this low for more than a year.
Friday, 2017 Since mid-October, WTI has seen the weakest point in prices. The international benchmark Brent crude also fell to $ 3.66 or $ 5.9pc to $ 58.94. This was the lowest since the end of October 2017.
Prices continued to fall all week. US crude oil stocks are reported to rise to the highest levels.
The US Energy Information Administration (EIA) said on Wednesday, the highest level in last month, US stocks of commercial crude oil rose to 4.9 million barrels to 446.91 million barrels.
Meanwhile, the US Energy Information Agency (EIA), the US crude oil production in the hands of 11.7mbpd held in the hands of the record.
According to reports, the US crude oil may clear more US crude oil in the second half of 2019, as US pipeline bottlenecks have been cleared. The increase in US oil production exceeded the capacity to carry additional crude oil.
The oil markets were pushed down by weak Asian and European markets due to the deep concern of the markets due to rising US interest rates and the slowing global growth in terms of trade tensions.
All of this has certainly contributed to the current market scenario.
However, in some areas of the United States, the Organization of the Petroleum Exporting Countries (Opec) and its kingdom of Saudi Arabia 's President Trump' s Twitter battle has a feeling that it has the desired effect.
President Trump thanked Opec and indeed Saudi Arabia for lowering prices. A tweet last Wednesday said: eet Oil prices are falling. Great! A big tax break for America and the World. Enjoy! $ 54 was only $ 82. Thanks to Saudi Arabia, but let's go down! "
There was a point that Trump had underlined before his native audience, so he decided to wait for the Prince of Saudi Crown Prince Prince Muhammad bin Salman.
Oil markets aroused a sense of glut. Despite the pressure on Iranian crude oil, prices are lower. Goldman Sachs expects the volatility in rising oil prices to continue at least in the next few weeks. On December 6, after the Opec Vienna ministers, the markets are expected to be somewhat more stable.
Goldman's analysts have described customers who have confirmed a number of suspects so far, in a note:
Opec knows everything well and is absolutely concerned. There were reports earlier that Saudi Arabia continued to provide support for an outage of 1-1.4 mbpd.
Saudi Arabia, in fact, increased its production by 500,000 bp / year in December.
But Khashoggi's murder and its consequences frighten the oil markets. A defenseless and weakened MBS desperately needs the support of Trump to make his own survival, not enough to annoy him.
It is certainly not very positive for the latest crude oil markets from Saudi Arabia. Excerpts from industrial sources, Bloomberg reported on Thursday that British oil production has reached 10.8-10.9mbpd since the beginning of this month, leaping to new levels.
In fact, the supply, including production and inventories, has reached 11mbpd even on some days. Riyadh also seems to have cut the amount of output that will be released, at least until January 19, at 500,000 hp / sec. Energy Minister Khaled Al-Falih told reporters on Thursday that weak oil demand was seen in January and that the kingdom would respond appropriately. cool the market concern.
And this continues as the pessimism of global economic growth is pessimistic.
Reuters, according to the good, old, friendly, international energy guru and International Agency (IEA) Executive Director Fatih Birol, expects geopolitical instability and uncertain economic growth pushed the oil markets to an unprecedented uncertainty, he said.
The slowdown in global economic growth is the demand for dentistry. The oil appetite in the US was konusunda very robust “, but the IEA warned of, relatively weak sağlam demand in Europe last week and developed Asian countries. IEA pointed to the slowdown in demand in India, Brazil and Argentina due to high oil prices, weakening currencies and worsening economic activity.
In a decision by Opec on December 6, a possible failure to cut production could further derail markets. But could Riyadh succeed in leading the way and make Trump pissed? It's a big question and big results.
Published on November 25, 2018, Dawn