These included trading suspensions and cheap financing, resulting in a rebound, impacting the crude market sentiments too – rather positively – after the bloodbath witnessed at the beginning of the week.
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Crude markets took the hit.
As for the U.S. and the rest of the so-called P5+1, they all support putting a bookend on the three-and-a-half-decade-long ostracization of Iran. In 2007 we saw non-OPEC supply declines. With the United States shale oil industry expected to thrive over the medium term and dramatically increase production, this fund could prove a decent investment.
Crude prices for August delivery scaled a high of USD53.89 a barrel intraday and a low of USD51.96.
“The bottom of the market may still be ahead, ” the report said.
It expects global demand growth to slow next year to 1.2 million barrels per day from 1.4 million this year.
Others too are betting on an oversupply scenario. “Ultimately this is a very bullish indicator for investors, we think”. And this time because of a new turn in world’s oil market. That means the oil cartel is producing over 1.7 million barrels more than the target set by OPEC ministers last month.
Top oil exporter Saudi Arabia continues to keep output and export supply high, maintaining fully contracted volumes to Asia in August. The grade has lost 13 per cent from this year’s peak in May. 6 million barrels a day, up on common by 3.1 million barrels from a yr in the past.
The Chicago Board Options Exchange Crude Oil Volatility Index was at 42.04 on Thursday, near Wednesday’s close of 42.2, the highest level since April 16.
OIL prices gave everyone a scare on Monday.
Data from China as well as the IEA figures capped oil’s gains. It had been sitting near US$60 a barrel for a few months after bottoming at US$43 in March.
Greece’s decision to reject the bailout package is unlikely to have a significant immediate effect on oil demand.
The IEA also forecasts that oil production in countries outside of OPEC will “grind to a halt”.
If that wasn’t enough, also putting downward pressure on oil is the potential for stronger than expected crude oil supplies. But it noted that some of this demand will be met by biofuels and natural gas. When seasonal, summer demand dies down, it would be even harder to get rid of all the stockpiles that should have been sold, Longson underlined. Commodities like oil that are priced in dollars tend to move inversely to the U.S. currency.
FRAK is billed as having exposure to firms who have “the potential to transform the global energy landscape” through improved, lower cost extraction technology which dramatically increases supply capacity and decreases dependence on foreign oil sources.
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Iraq has started to pump oil a rates faster than ever before.
