The oil market started 2017 with a continuing increase in 2016. In the coming weeks, investors will focus on the fact that OPEC producers and outside the organization will actually begin to implement provisions on limiting the supply of raw materials.
“The reports from Kuwait and Oman have been positive so far, but the road to stronger increases in crude oil prices will be winding,” said Ole Hansen, head of commodity markets strategy at Saxo Bank. In his opinion, the growth potential of Brent above $ 60 per barrel is currently limited.
Hansen believes there is strong speculation in oil. Investors are fighting because OPEC may actually cut production. On the commodity markets, so-called long US crude oil positions rose to their highest level in 2.5 years.
According to the specialist, in the short term from December, oil markets may record further increases. However, speculative activities are the biggest threat to crude oil prices because at some point they can lead to a correction.
“This can happen if there are signals that some countries that have signed a production limitation agreement are not ready to fulfill their obligations or countries that are not covered by the agreement, for example, Nigeria and Libya will increase the supply of raw materials,” explains Hansen.
Analyst: there are no signs of stopping the rise in oil prices
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Azovpromstal® 4 January 2017 г. 12:07 |
