For two weeks the next OPEC meeting, the cartel of oil producing countries, the price of crude continued to decline, settling below the symbolic $ 80.
In the morning, the European benchmark crude was even dropped to $ 79.35, its lowest level since September 29, 2010.
In electronic trading on the New York Mercantile Exchange (Nymex ), a barrel of “light sweet crude” (WTI) for the same maturity lost 30 cents at $ 76.89.
THE SAUDI GROW TO DROP
Since the summer, the price of crude fell by 25%, the supply is greater than demand sustainably. And markets are more inclined to believe that Saudi Arabia, leader of OPEC will not cut production to support prices.
In fact, in recent weeks, the “policeman “OPEC has not indicated any intention to do so. Instead, Saudi Aramco has chosen November 4, the
cut prices to maintain market share
See also:. Faced with declining oil, OPEC tries to reassure
“The discussions on a price war reveal misunderstandings – deliberate or not – and have no basis in fact” said on Wednesday, Saudi Oil Minister Ali al-Nuaimi, in a speech to Acapulco (Mexico).
According to experts, the Saudi decision could be a response to the oil boom and shale gas in the United States, making a barrel of crude less competitive.
By November 27, the date of the OPEC meeting, market participants will pay attention to statements by country cartel members.
Venezuela and Ecuador have already undertaken a “joint approach to protecting prices” for an “some reduction in production” of OPEC.
But for the experts at Goldman Sachs, the decline in crude oil prices should continue and should anticipate a barrel of West Texas Intermediate at $ 70 in the second quarter 2015.
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