Daily Management Review

Oil Markets Strike A Balance Amid The Hurts Caused By Waning Asian Demands


07/05/2016


Asia is not demanding as much oil, while finally after the Brexit turmoil, oil futures seem to find steady footings.



On Monday, 04th of July 2016, the oil futures began to steady down after the Saudi energy minister’s comments, wherein the latter informed that the markets were able to strike come kind of balance. However, a reduction in demand from Asia creates a backlog.
 
The trading rates for “Brent crude futures” were at “$50.31 per barrel”, while the U.S. crude came down by five cents to “$48.94”. Nevertheless, no “West Texas Intermediate crude settlement” took place on Monday as the U.S. was celebrating their Independence Day. According to BMI Research analysts:
"Fundamentals offer limited scope for further price gains and we expect Brent to trade broadly sideways over the coming months”.
 
The crude futures have found some support over their Nigerian output concerns as a militant group has carried out “attacks on oil facilities” of Nigeria. As a result, the crude productions at Nigeria are facing thirty years lows, while the “Nigerian National Petroleum Corporation” assured that the situation is reversing.
 
In a statement, Morgan Stanley said:
"After another counterseasonal summer build, gasoline cracks now trade below diesel, which should force refiners to act ... The end result is likely to be run cuts, with some signs already emerging for 3Q”.
"Asia refiners have already started to pull back ... and there are reports of cargoes struggling to sell”.
 
In fact, higher output of oil could also be equally responsible for the “cap prices”. Moreover, Reuters reported that:
“In the United States, drillers last week added oil rigs for a fourth week in five, in the best month of producers returning to the well pad since August 2016.
“Also, Russian oil output stood at 10.84 million barrels per day (bpd) in June, up from 10.83 bpd in May.
“In Norway, oil workers signed a deal on Saturday, avoiding a strike that would have cut output from western Europe's top oil producer by about 6 percent”.
 
 
 
 
 
 
 
References:
http://www.reuters.com/







Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat