Drilling to cut off the ice, OPEC's meeting has warmed the oil price
Drilling to cut off the ice, OPEC's meeting has warmed the oil price
Huitong network October 17 - - November U.S. NYMEX crude oil futures prices on Friday (16 October) closed up $0.88, or 1.9%, to $47.26 a barrel, crude oil futures closed higher on Friday, save "four losses" part of the decline, but a week from the whole, there is still a 5% decline. On Friday, according to U.S. crude oil drilling the 11-member cartel baker hughes, 10 in the latest week to reduce the decline in crude oil drilling the 11-member cartel for seven straight week, the news reported to the price of "snow", make its "coming back to life".
Meanwhile, ICE brent futures closed up $0.73, or 1.5 percent, to $50.46 in December. Overall, it fell more than 4 percent.
On Friday, baker hughes reported that the number of drilling RIGS in the United States has decreased by 10 to 595, and that the total number of drilling RIGS in the U.S. has dropped eight to 787. U.S. oil prices rose after the data was released. The data undoubtedly helped fuel oil prices, which helped push up the price of oil. The supply squeeze should push oil prices above $60 a barrel by the end of 2016, according to Raymond James & Associates. U.S. oil production is expected to "bottom out" in the third quarter of 2016, before recovering. By the third quarter of 2016, total liquid oil production will drop to 12.13 million barrels per day from the peak of 12.95 million barrels a day reached this spring. The bottom will fall by 812,000 barrels per day, much of which will be concentrated in crude oil production.
At the same time the German commercial bank, said the excess supply of crude oil on the market for high level is impeding the rising price of crude oil, so the price of oil has not from other commodities sector rose to profit, and relatively weak, but is expected to decline in oil prices space is limited, the excess supply of crude oil will ease next year.
In addition, the expectations of the organisation of the petroleum exporting countries (OPEC) before the official summit to be held next week, will hold a "technical meeting", which seems to provide a glimmer of hope, that makes the market expected producer group will take some actions to alleviate a glut on the market of the difficult situation.
Port of Global Securities (Seaport Global Securities strategy analyst Richard Hastings, said he believes the "game" will make brent crude oil prices remain at $60 a barrel from now on, though in the current circumstances, it seems impossible. Hastings also said oil prices and crude oil prices had crossed $50 in recent days after a series of oil executives and Opec leaders last week suggested that crude prices were recovering.
Hastings said the oil market is in a very difficult situation, with oversupply and inadequate demand becoming more systemic and complex and difficult to resolve. Market participants are reluctant to see this when they return to any type of market equilibrium scenario analysis.
At the same time, market participants were full of "visions and fantasies" of what the President of venezuela said on Wednesday, including the "meetings" of Opec and non-opec members. A recent Reuters report showed that Opec member venezuela had begun a plan to restructure Opec's past "price-band mechanism".
According to Reuters, said before the plan is made up of venezuela's oil minister, Ramirez Raphael (Rafael Ramirez) is proposed, which includes cut production step by step in order to control prices, and is gradually rising oil prices, "the first floor" target price of $70 a barrel, the next target price to $100 a barrel.
The markets have been discussing for weeks the Opec meeting this month, and had been rumoured to be taking part in the meeting.
Citi Futures (Citi Futures) energy analyst Tim Evans says, this seems to make some investors perceive that the organisation of the petroleum exporting countries is going to change tactics, but they also expect the organisation of the petroleum exporting countries likely will change the policy, but it's going to be on December 4, rather than the Opec summit next week's meeting.
Schlumberger, the world's largest oilfield services company, reported a 11 per cent year-on-year fall in third-quarter profit, while saying it was not optimistic about the energy sector. The company's CEO says the recovery appears to be going to be
