Daily Management Review

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


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”.


Science & Technology

How China became a pioneer of the solar industry

CNBC: Intel leaves the wearable gadgets market

Oculus Rift falls in price…again

Ukraine Police Official Says Likely Cover For Malware Installation Was Global Cyber Attack: Reuters

Researchers See 'Wannacry' Link As Another Cyber Attack Sweeps Globe

AEON and IBM to create a blockchain platform

Toyota & Cartivator Are Building Flying Cars To Light Up The Olympic Flame Of 2020

Stock trading computers are not a future anymore

Temper Technology With Humanity - Apple's Cook Tells MIT Graduates

As Spying And Crime Tools Mix, Blame Game For Cyber Attacks Grows Murkier

World Politics

World & Politics

CNN: Rex Tillerson may leave the post of US Secretary of State

Its South China Sea Territory Being Protected By Indonesia From 'Foreign' Threats

A Swarm-Like Attack From North Korea Could ‘Overwhelm’ South Korea's THAAD Missile Shield

Powerty in Italy tripled in 10 years

Hackers steal a businessman's reputation in Sweden

PWM reveals best citizenship-by-investment programs

Austria gathers troops to shelter itself against refugees

In Thirty Years Human Beings Will Work Only 'Four Hour A Day', Predicts Jack Ma