Hey guys, here are some thoughts for today :)
So oil prices advanced in the Friday morning and head for the best gains since mid-May thanks to the production cuts in the US underpinning hopes for market rebalance.
According to the Energy Information Administration (EIA), the US oil output fell by 100,000 barrels per day to 9.3 million barrels per day last week while oil production in Libya has reached 1M barrels per day, an informed source told Reuters on Thursday. The prices also benefited from dollar slump.
Market players note signs of a recovery in the North Sea. This, in turn, may mean that those "bearish" sentiments that pushed prices down last week and provoked a serious reduction in net long positions for both grades were not entirely justified.
Another bearish signal may be the strengthening of oil production in Canada, as reported by Financial Times. The country has the third largest oil reserves in the world and able to increase hydrocarbon production, jeopardizing the implementation of the OPEC + agreement aimed at restoring the balance of supply and demand in the oil market. In recent months, Canadian oil companies have reduced capex, but production on old fields will be maintained for at least 18 months.
The Canadian Petroleum Producers Association forecasts an increase in oil production by 270,000 b/d in 2017 and another 320,000 b/d in 2018. The pace of production growth in Canada for several next years may lag behind only the US, said the senior director of the analytical company IHS Markit.
Pound is stable dismissing release of a weak confidence index of British consumers, which fell in June deeper than expected amid parliamentary elections and the beginning of negotiations about the terms of the UK's exit from the European Union. The British are increasingly concerned about their own finances, and for the future of the country's economy. The reading of the indicator in the current month decreased to minus 10 points, the minimum since July 2016, when the British responded to the results of the referendum on Brexit, compared to minus 5 points in May. Dollar futures flattened near 95.50 ahead of the weekend.
So oil prices advanced in the Friday morning and head for the best gains since mid-May thanks to the production cuts in the US underpinning hopes for market rebalance.
According to the Energy Information Administration (EIA), the US oil output fell by 100,000 barrels per day to 9.3 million barrels per day last week while oil production in Libya has reached 1M barrels per day, an informed source told Reuters on Thursday. The prices also benefited from dollar slump.
Market players note signs of a recovery in the North Sea. This, in turn, may mean that those "bearish" sentiments that pushed prices down last week and provoked a serious reduction in net long positions for both grades were not entirely justified.
Another bearish signal may be the strengthening of oil production in Canada, as reported by Financial Times. The country has the third largest oil reserves in the world and able to increase hydrocarbon production, jeopardizing the implementation of the OPEC + agreement aimed at restoring the balance of supply and demand in the oil market. In recent months, Canadian oil companies have reduced capex, but production on old fields will be maintained for at least 18 months.
The Canadian Petroleum Producers Association forecasts an increase in oil production by 270,000 b/d in 2017 and another 320,000 b/d in 2018. The pace of production growth in Canada for several next years may lag behind only the US, said the senior director of the analytical company IHS Markit.
Pound is stable dismissing release of a weak confidence index of British consumers, which fell in June deeper than expected amid parliamentary elections and the beginning of negotiations about the terms of the UK's exit from the European Union. The British are increasingly concerned about their own finances, and for the future of the country's economy. The reading of the indicator in the current month decreased to minus 10 points, the minimum since July 2016, when the British responded to the results of the referendum on Brexit, compared to minus 5 points in May. Dollar futures flattened near 95.50 ahead of the weekend.