There is a drastic change in the forecast of new oil prices
Expert advice on the oil market is now fairly uniform and sufficient for the state of industry and infrastructure. Recent weeks have been characterized by a clear revaluation of recovery time for both the global economy and consumer activity. Recurrent signs are also shown, by various industrial sectors, in addition to obvious causes such as epidemics, and long before the outbreak of the virus. The forecast for new oil prices is changing strongly.
In digital terms, political forecasts for Brent expect $ 50, but this is more than a wish. Solid forex experts, like bmfn.comSuch cases are much more restrained. Now the lighter oil corridor is expected to be around $ 40-45, but it depends on how much fuel demand will increase in the future. More on this below.
On BMFN, Twitter can easily track the history of oil fluctuations over the past months. The spring was marked by the oil dumping of the Saudis, who projected to “sit out” due to the huge foreign exchange reserves of their rivals. Among the victims, first, shares of OPEC + companies, the Nigerian oil price had declined, slightly lower – Shell American.
The present status quo is as follows. Since 1 May, the market has been regulated by the OPEC + agreement on a systematic temporary decrease in production to maintain at least fair prices. Based on autumn 2018 levels, this production should be reduced by 9.7 million barrels per day. For Saudi Arabia, the sanctions are even more severe – at least 11 million barrels per day. It is too early to talk about any long-term impact of anti-dumping measures on aggregate prices. May futures also turned negative due to the excess of “black gold” in tankers.
In addition, another factor is currently outpacing Texas oil. In mid-June, it became known that the United States supplies about half a million shale oils to the market daily. Due to the fact that August futures for WTI on NYMEX still fell and are trading in the region of $ 40–41 per barrel. Brent is trading at $ 42.73 per barrel on 23 June on the London Stock Exchange ICE Futures.
Fuel crisis and its excesses
The BMFN platform maintains growth in the industry world. After a large price plunge due to the excess of oil on the tankers, the price tag crawled slightly with adjustments within one or two euro cents. The refineries were not isolated, as these are strategic ventures with a full cycle of work and need to regularly monitor the cracking process.
Prices are stable in the European Union – from 1 Euro per liter of “Super Plus” fuel in Bulgaria to 1.7 Euro in the Netherlands. A similar situation occurs in the United States – $ 2.1 per gallon (for comparison, in the fall of 2019, the American “ordinary” hit 2.50). Traditionally “automobile” is also a feature for the US market that there is a large-scale transition to bicycles and a temporary abandonment of flights. Reports from airports indicate that passenger traffic has literally crashed, which also affects demand for reference to the WTI and, in turn, overtakes the vehicle’s fuel price.
If a trader wants that his foreign exchange move in the oil stock sector is sufficient for the market situation, it is better to listen to the experts. BMFN Resources is a recognized platform in the field of trading in oil and light petroleum products. Here, a detailed digest on this topic is regularly provided which is relevant to business right now and is most expected from the world’s leading exchanges.
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