oil prices maintained their upward trend Monday during European trading, still supported by the forest fires raging in Canada and the appointment of a new oil minister in Saudi Arabia (AFP / File / AMER HILABI)
Around 4:10 p.m. GMT (6:10 p.m. in Paris), the Brent crude from the North sea for July delivery was worth 43.83 dollars on the InterContinental Exchange (ICE) in London, down 1.54 dollars compared to Friday’s close.
on the New York Mercantile Exchange (Nymex), a barrel of “light sweet crude” (WTI) for June delivery lost $ 1.12 to 43.54 dollars.
oriented upward in early session, the price of Brent and WTI are ironed in the red just before the opening of US exchanges in a market trying to gauge the impact on the global supply of Canadian forest fires and the dismissal of the iconic Minister Saudi petroleum, Ali al-Nuaimi.
the oil Minister of change in Saudi Arabia, the largest exporter of crude, “may be one reason (explaining) that oil prices are not reached to maintain their early lead (trade) “fell Fawad Razaqzada, analyst at City Index.
“It is widely expected that the successor of Ali al-Nuaimi, Khaled al-Faleh, former CEO of the public giant Aramco, follows the market share protection strategy” which was until at work in the kingdom, the analyst continued.
the new Minister has indeed eager to ensure Sunday that Riyadh would “maintain its stable oil policy.”
in other words, this redesign further reduces the likelihood that an agreement on a production of frost has reached with other major producers outside the Organization of petroleum exporting countries (OPEC), as the Russia, judged Mr. Razaqzada.
the kingdom, the dominant member of OPEC, has continued to defend its market share despite a global oversupply which led to plummeting prices since mid-2014.
“What path will follow the new minister?”, wondered in a note experts at Commerzbank. “One might think that oil prices will again be used as a weapon – but this time against competitors from countries within OPEC,” not just against US shale oil producers, they said.
the regional rivalry between Saudi Arabia and Iran, which is back on center stage following the lifting of sanctions against Tehran in January, is considered one particular the main causes for the failure of negotiations between producing a gel of the offer in mid-April in Qatar.
“in the short term (the appointment of Mr. Faleh) should not in any way change the strategy to conquer desired market share in the kingdom, “commented his side Christopher Dembik, analyst at Saxo Bank.
” But longer term, the minister will not fail print its brand. it will be relevant to know which way it will influence the functioning of OPEC. this is not a new character but its position is not well known by the market, which explains some concerns, “continued the analyst.
the market also continued to monitor forest fires in and around the city of Fort McMurray, Canada, while according to the first estimates, the disaster would have reduced local production of about one million barrels per day (bpd).
After over a week of fires in the oil region of Alberta, advancing fires slowed somewhat Monday through weather wetter but investors remained cautious awaiting the weekly Wednesday figures on oil reserves in the United States, which Canada is the largest supplier of oil country.
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