AppleFX Fri May 26, 2017 3:43 am
May 26, 2017
Drop in Oil prices as investors discontented in its low figure
Oil prices declined by 5 percent following the extension of production cuts by Opec causing other oil producing countries to be dismayed who are expecting bigger reduction. Consequently, crude prices dropped to a highest percentage drop since early March.
During the last OPEC meeting, they reached an agreement to prolong supply cuts constitute of 1.8 million barrels per day until the first quarter ends next year and investors are anticipating around half a million extra barrels to be contracted. However, Saudi Arabia’s energy minister, Khalid al-Falih said that other ministers find it unnecessary to lessen the output further and nine months is the “optimum” duration.
On the other hand, U.S. shale producers are motivated to provide more supplies because of cheap cost of oil at $50 bpd. Although, they have to be careful since it could exceed the target increase and being down further the price, stated by the Texas shale oil producer president David Arrington.
May 26, 2017
Drop in Oil prices as investors discontented in its low figure
Oil prices declined by 5 percent following the extension of production cuts by Opec causing other oil producing countries to be dismayed who are expecting bigger reduction. Consequently, crude prices dropped to a highest percentage drop since early March.
During the last OPEC meeting, they reached an agreement to prolong supply cuts constitute of 1.8 million barrels per day until the first quarter ends next year and investors are anticipating around half a million extra barrels to be contracted. However, Saudi Arabia’s energy minister, Khalid al-Falih said that other ministers find it unnecessary to lessen the output further and nine months is the “optimum” duration.
On the other hand, U.S. shale producers are motivated to provide more supplies because of cheap cost of oil at $50 bpd. Although, they have to be careful since it could exceed the target increase and being down further the price, stated by the Texas shale oil producer president David Arrington.