Saudi Arabia and Russia want to extend the agreement for the production, but the market is more concerned about the hurricane

While attempts to reduce continue to attract buyers ‘ attention, oil does not find the strength to leap above $52.80/$53.00. The Wall Street Journal last night, citing sources familiar with the situation, reported that Saudi Arabia and Russia want to extend a deal on limiting production for an additional three months (until the end of June 2018) and try to obtain the consent of the other OPEC members+. The publication of the WSJ article has helped to improve the atmosphere of trading, but the magnitude of response once again demonstrated the efficiency of the measures taken by OPEC.
However, while official confirmation of these reports has not been received, and market participants are more interested in the question of the impact of hurricane Harvey at refineries in the United States. Adverse weather conditions are expected will not go undetected for oil production, particularly in shale fields like Eagle Ford, but here the impact is expected will be insignificant in duration in nature. At the same time for the refinery the consequences threaten to be more significant: to date, the volume of oil refining dropped by 2 million barrels, or 15% of the production capacity. Meteorologists predict further rainfall in the next few days, analysts at Tudor Pickering believe that the distribution of the hurricane on the coast of Texas towards Louisiana, the reduction of refinery capacity can be up to 25% -30%, and this means a drop in oil demand and volatile data on stocks in the coming weeks

Leave a Reply

Your email address will not be published. Required fields are marked *