Monday, 12 June 2017

OIL PRICES ROSE EARLY ON MONDAY AS FUTURES TRADERS BET THE MARKET

Oil prices rose early on Monday as futures traders bet the market may have bottomed after a recent steep fall, even as physical markets remain bloated by oversupply, especially from a relentless rise in US drilling.

Brent crude futures were trading at US$48.44 per barrel at 0101 GMT, up 29 cents, or 0.6, from their last close.

US West Texas Intermediate (WTI) crude futures were at US$46.09 per barrel, up 26 cents, or 0.6 per cent.

Traders said that the price rises came on the back of speculative traders upping their investment into crude futures, by taking on large volumes of long positions, which would profit from a further price rise.

The rise in new long positions comes after Brent and WTI crude futures have fallen by around 10 per cent below their opening levels on May 25, when an Opec-led policy to cut oil output was extended to cover the first quarter of 2018 instead of expiring this June.

Qatar remains committed to oil output cut deal
Qatar's energy minister, Mohammed al-Sada, saying that Qatar remains committed to the OPEC & non-OPEC oil output cut deal agreed last month.

Al-Sada’s comments came after Saudi Arabia, Egypt, Bahrain, Yemen & the United Arab Emirates (UAE) cut diplomatic and economic ties with Qatar last week.

Russia: OPEC/non-OPEC output cut deal at this stage
Russia’s energy minister Alexander Novak crossed the wires over the weekend, noting the following:
Sees no need to review the OPEC/non-OPEC output cut deal at this stage.

It’s too early in to make any decisions on changes.

At the time of writing, both crude benchmarks trade +0.50 higher, with WTI just ahead of $ 46 mark, while Brent near $ 48.40.

Current Crude Oil Status:
Currently, Crude Oil is trading at 46.13, up + 0.65%, having posted a daily high at 46.15 and low at 45.72.

To know our latest recommendation or crude oil trading tips along with stop loss and target price visit www.mmfsolutions.sg

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