Daily Management Review

U.S, Gathers Support For Crude While The Oil Price Come Crumbling Down


12/29/2015


The oil market of the U.S. has come close to the low margin ever shown in the last eleven years.



On the 24th of December 2015 oil prices climbed higher than “$38 a barrel” but shortly after that the prices retreated, whereby keeping the price range “within sight of an 11-year low” in this week. Consequently, traders “put positions in order” expecting a “low liquidity” week ahead.
 
In the midst of “falling inventories”, the U.S has gathered support, as it brought down drilling and lifted “a ban on most U.S. crude exports”. Likewise, for the first time in this year, the U.S. crude has been pushed to “a premium to global benchmark Brent”. Moreover, Reuters informs:
“Brent LCOc1 settled up 53 cents at $37.89 a barrel as of 11:48 a.m. EST. It fell to $35.98, an 11-year low, on Tuesday. U.S. crude CLc1 settled up 60 cents at $38.10 after gaining more than 8 percent this week”.
 
While, the Managing Partner at the “Tyche Capital Advisors”, Tariq Zahir, said:
"Some traders playing spot on the downside are getting out and calling it a year. .
 
Fundamentals are in support of the futures of the U.S. crude whereby the “ban on crude exports”, for a period of forty years, has been lifted, to which the Petromatrix’ analyst, Olivier Jakob remarked:
"The lifting of the ban on U.S. exports will provide some underlying support for U.S. crude. Oil demand in 2015 was exceptionally high and at current prices, demand is going to remain strong next year”.
"For now, there is still an ample supply of crude and a huge amount in storage."
 
According to the traders of Brent the London market remained “quiet” as many “participants” were busy enjoying their Christmas holidays.
 
Last week crude “gained support” in the U.S, whereby Crude inventories, that were “expected to rise”, came hurling down by “5.88 million barrels”, informed the “Energy Information Administration”.
 
As per the reports submitted by Baker Hughes, in the last six weeks time, this is the fifth time that the “U.S. oil drillers cut rigs”, reflecting the fact that “low prices” are “curbing activity and could slow output”.
 
Brent has reduced by fifty percent, while only eighteen months ago, the prices were “more than $100 a barrel”. The reduction was caused by a pressure created from a “supply glut that according to OPEC figures exceeds 2 million barrels per day”.
 
However, analysts are expecting to see smaller glut in the coming year for the demand of the world is on the rise and the “price collapse leads to lower output from some countries outside OPEC”. Nevertheless, OPEC has not yet showed any sign that it is “prepared to lower its supply - which is likely to rise when sanctions on Iran are lifted”.







References:
http://www.reuters.com/
 







Science & Technology

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

Based On One Photo, Research Shows A.I. Can Detect The Sexual Orientation Of A Person

Cyber Crime Risks Are Substantial, Systemic, Says SEC Chief

Tech Titans, Amazon & Microsoft, Partner To Integrate Their Respective A.I. ‘Voice Assistants’

SpaceX Selects Technical University Team’s Hyperloop As The Winner Of The ‘Fast Pod’

Market of autonomous cars will accelerate by 2025

AHA Customers In Iceland Enjoy The First ‘Drone Delivery Service’ In The World

Wal-Mart to unite with Google's voice platform

World Politics

World & Politics

Strong 3.4 magnitude earthquake detected coming from North Korea’s nuclear test site

Even As Kim And Trump Trade Threats, South Korea Approves $8 Million Aid For The North

From October 1 Uber is banned in London

Concerns about the far-right party are growing in Germany

Fight for clean air: 7 countries against internal combustion engines

Japan, India Agree To Deepen Defence With China In Mind

Myanmar's Rohingya Crisis May Be Taken Advantage Of By Terror Groups

The French people voted for Labour Reforms, there is no turning back: French Prime Minister Edouard Philippe