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Oil rises despite oversupply, and OPEC not likely to cut production
11/7/15
Singapore - Riyadh / Reuters
Crude oil prices rose on Friday after it fell more than two percent in the previous session, and some analysts say oversupply and rising dollar will continue to put pressure on crude markets, while a senior Gulf OPEC delegate said it was unlikely that the organization adheres to its policy not to cut output when it meets in December Next I.
The total US crude futures to $ 45.53 a barrel by 0700 GMT, up 33 cents from its level at the settlement, while Brent crude rose 27 cents to $ 48.25 a barrel. However, these gains came after sharp declines in the previous session on rising US crude stocks.
Some analysts said that the oversupply will continue to put pressure on the oil markets.
The BMI Foundation's Fitch Ratings Research "with high production of major oil producers, the decline US shale crude production will not be enough to balance the bloated about supply oil market during the next two years.
"She added," the United States, Russia and OPEC together produce more than 50 percent of the world's crude and production of these producers (collectively) has increased in 2015 despite the production decline in the United States .
"said the French investment bank Natixis" Oil prices will remain under pressure as long as the surplus in the market.
"US currency rose about five percent against a basket of other major currencies since early October amid market expectation that the Federal Reserve (the US central bank) first among which major central banks to raise interest rates since the global financial crisis in 2008-2009.
He said, "ANZ" Bank on Friday "growing speculation that the Federal Reserve will raise interest rates will put downward pressure on commodity prices," he said, adding that he expected US crude decline in the futures of three percent in the next three months because of the American producers to reduce the cost.
In this context a senior Gulf OPEC delegate said it was unlikely that the organization adheres to its policy not to cut output when it meets in December if the main producers did not appear outside willing to help to reduce supplies.
He said the delegate of the Gulf, said that "oil prices are under pressure and refined products inventories higher than the average in five years, but that is unlikely to improve next year."
The delegate said that "the demand for oil strong and is expected to next year remains well on Despite the concerns about the Chinese economy. "He added," It's a difficult situation for OPEC to cut alone and others over their output, if he did not cooperate producers from abroad, it is likely that OPEC will keep its policy unchanged. "led Saudi Arabia shift in the strategy of OPEC in November 2014 to defend market share in the face of competition supplies rather than cut production to push prices higher. The delegate said "the expectations are now, with the start of the decline in oil production from many areas, including in the United States and the North Sea, the stocks begin to decline by early next year." are trading Oil below $ 50 a barrel when less than half of the registered in June level in 2014. But the delegate of the Gulf said that GDP should not be the only measure of the demand for oil but should take other factors into account such as employment, increases in income. "The demand in China change because of slowing economic growth "is probable that demand for crude in the United States next year, continue to grow.
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11/7/15
Singapore - Riyadh / Reuters
Crude oil prices rose on Friday after it fell more than two percent in the previous session, and some analysts say oversupply and rising dollar will continue to put pressure on crude markets, while a senior Gulf OPEC delegate said it was unlikely that the organization adheres to its policy not to cut output when it meets in December Next I.
The total US crude futures to $ 45.53 a barrel by 0700 GMT, up 33 cents from its level at the settlement, while Brent crude rose 27 cents to $ 48.25 a barrel. However, these gains came after sharp declines in the previous session on rising US crude stocks.
Some analysts said that the oversupply will continue to put pressure on the oil markets.
The BMI Foundation's Fitch Ratings Research "with high production of major oil producers, the decline US shale crude production will not be enough to balance the bloated about supply oil market during the next two years.
"She added," the United States, Russia and OPEC together produce more than 50 percent of the world's crude and production of these producers (collectively) has increased in 2015 despite the production decline in the United States .
"said the French investment bank Natixis" Oil prices will remain under pressure as long as the surplus in the market.
"US currency rose about five percent against a basket of other major currencies since early October amid market expectation that the Federal Reserve (the US central bank) first among which major central banks to raise interest rates since the global financial crisis in 2008-2009.
He said, "ANZ" Bank on Friday "growing speculation that the Federal Reserve will raise interest rates will put downward pressure on commodity prices," he said, adding that he expected US crude decline in the futures of three percent in the next three months because of the American producers to reduce the cost.
In this context a senior Gulf OPEC delegate said it was unlikely that the organization adheres to its policy not to cut output when it meets in December if the main producers did not appear outside willing to help to reduce supplies.
He said the delegate of the Gulf, said that "oil prices are under pressure and refined products inventories higher than the average in five years, but that is unlikely to improve next year."
The delegate said that "the demand for oil strong and is expected to next year remains well on Despite the concerns about the Chinese economy. "He added," It's a difficult situation for OPEC to cut alone and others over their output, if he did not cooperate producers from abroad, it is likely that OPEC will keep its policy unchanged. "led Saudi Arabia shift in the strategy of OPEC in November 2014 to defend market share in the face of competition supplies rather than cut production to push prices higher. The delegate said "the expectations are now, with the start of the decline in oil production from many areas, including in the United States and the North Sea, the stocks begin to decline by early next year." are trading Oil below $ 50 a barrel when less than half of the registered in June level in 2014. But the delegate of the Gulf said that GDP should not be the only measure of the demand for oil but should take other factors into account such as employment, increases in income. "The demand in China change because of slowing economic growth "is probable that demand for crude in the United States next year, continue to grow.
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