Tuesday 2 May 2017

CRUDE OIL CONTINUES TO STAY BELOW TO $49


Crude oil expenses continue to stay underneath selling stress on the first buying and selling of the week, pushing the barrel of West Texas Intermediate to a new session low at $48.60. Following the preliminary drop, the barrel of WTI turned into ability to regain some of the losses and is now trading at $48.75, down 1.15% at the day.

President Trump signed an executive order on Friday that would permit the expansion of oil drilling interest in the US to waters near to California and other coastal regions. The growing crude oil production has been the principle motive why the OPEC/non-OPEC output reduce deal hasn't had the intended impact on the rates and this trendy order would even in addition upload to the overall amount of output from the U.S. Moreover, earlier today, a record through Reuters suggested that the Saudi Aramco is planning to release an oil terminal the Red Sea, which would increase the total loading and export capacity to 15 million bpd.

Saudi Aramco to launch oil terminal on the Red Sea next year

State oil giant Saudi Aramco plans to launch its overhauled Muajjiz oil terminal on the Red Sea next year, lifting its total loading and export capacity to as much as 15 million barrels per day, Saudi officials said.

Located on the Red Sea, Muajjiz had been used as an export terminal for Iraqi crude through the Iraqi Pipeline in Saudi Arabia (IPSA), but it has not carried Iraqi crude since Saddam Hussein invaded Kuwait in 1990.

Bringing Muajjiz terminal online next year would boost the kingdom's total oil handling capacity to 15 million barrels per day (bpd) from 11.5 million bpd currently, Mohammed al-Qahtani, Aramco's senior vice president for upstream, told Reuters in an interview at the company's headquarters in Dhahran.

The move will boost Aramco's IPO-ARMO.SE ability to meet its commitments to customers and maintain its export capability from the kingdom's west coast.

Saudi Arabia has three primary oil export terminals, including the port of Ras Tanura on the Gulf, with an average capacity of around 3.4 million bpd and which handles most of Saudi Arabia's exports, according to the U.S. Energy Information Administration (EIA).

The Ras al-Ju'aymah facility on the Gulf has an average handling capacity of about 3 million bpd and can accommodate the largest oil tankers for crude loadings.

The Yanbu terminal on the Red Sea, from which most of the remaining volumes are exported, has an average handling capacity of 1.3 million bpd.

Current Status Of Crude Oil:

Currently, Crude Oil is trading at 48.75, down -0.18%, having posted a daily high at 48.80 and low at 48.66.


Technical Levels to Watch:

The barrel of WTI could face the first hurdle at $49 (psychological level) ahead of $49.75 (Apr. 28 high) and $50.20 (Apr. 26 high). To the downside, supports align at $48.20 (Apr. 27 low), $47.80 (Mar. 28 low) and $47 (Mar. 22 low/psychological level).

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