DOCX

The excess supply is expected to continue OPEC producers bearish on oil prices in 2016

By Jon Riley,2015-12-04 20:54
15 views 0
The excess supply is expected to continue OPEC producers bearish on oil prices in 2016

    The excess supply is expected to continue OPEC

    producers bearish on oil prices in 2016

    Venezuela, ansel auspicious state, venezuela's state oil company owned by Jose Antonio Anzoategui industrial park pier berth of an oil tanker.

    According to Reuters on the 17th of the organisation of the petroleum exporting countries (OPEC) is a producer, oil prices are unlikely to significantly increased in 2016 because of the Iran the excess supply of extra yield could increase and oil-producing countries voluntarily restricting output still slim hope.

    Including gulf countries, OPEC delegates, said although further global oil demand growth, and oil prices by more than half over the past 18 months lead to inhibition of non-opec supply, time has not yet arrived but the rise in oil prices.

    Some members argue that the oil market in 2017 will be more balanced, although they expected, under the condition of market sentiment influence is greater than the fundamentals, the oil market is facing more pressure, may cause oil prices hitting a test first 30 - $40 a middle level, and then slow rebound in the second half of next year.

    Before OPEC meeting failed to agree on yield limit, so these latest comments suggest that OPEC delegates is lowering expectations of the oil market picks up.In August of this year, OPEC representative of gulf states also expect oil prices in December to rebound to $60.

    "In the first half of next year, supply exceeds demand in and around the Iranian supply fears will make pressure on oil prices," a major oil-producing OPEC delegate said.

    "According to the current low, I think next year to predict clothrandIt is very difficult for oil prices above $40-45.I don't think it will hit a $60."

    The OPEC meeting on December 4, continue to adhere to executed a year on high guard city share, squeezes out high cost competition strategy, brent crude fell to $36.33 a barrel on Monday, as in December 2008, the lowest since the financial crisis.

    An OPEC delegate said: "in this environment is not optimistic, especially now brent oil prices fell below $39 a barrel."

    "I think 2016 days also won't than is much better than this year, the average oil price in the $50, most unless OPEC production measures, but it's unlikely."

    In the first half after oil prices will rebound?

    Global oil supply some really too much, according to OPEC data suggests that excess supply quantity of more than 2 million barrels per day, it is not on, once the west to lift sanctions on Iran, the Iranian oil flooding the market.

    Next year, but the sources are also expected in the second half of the global oil inventory will begin to decrease, which will bring the end of oil prices more support.

    From the United States, they say, the supply of oil shale oil producers such as cost, although now performance is remarkably resilient, but the supply of expected next year, they will also reduce more quickly, because of many oil companies have been operating at a loss.

    "We're betting on the high cost of oil producers cut excess supply," the third OPEC sources said."There is more hope for a 2017 provide certain support for the market."

    "But we also need to monitor Iran's export situation. When the country can increase production," the source said, adding he expects to 2017 oil prices will rise to 50 - $60 a barrel range.

    OPEC expects 2016 global oil demand growth of 1.25 million barrels a day, due to hit by the oil price collapse, non-opec supply will fall by about 400000 barrels a day, so that the excess supply is less than half of this year, to about 900000 barrels a day.

    But Iran's oil supply increase may counteract the effects of non-opec production.Iran's government plans to sanctions after next year, will increase oil production, at least 1 million barrels per day accounted for about 1% of the world's oil supply, but the market for Iran can increase how much, and when to start production remain sceptical.

    Two other OPEC delegates also hopes that the oil market will be stronger after the first half of next year.One of the representative said that when the market began to restore balance to the beginning of 2017, brent oil prices may rise above $60 a barrel.

    "But we also need to monitor Iran's export situation. When the country can increase production," the source said, adding he expects to 2017 oil prices will rise to 50 - $60 a barrel range.

    OPEC expects 2016 global oil demand growth of 1.25 million barrels a day, due to hit by the

    oil price collapse, non-opec supply will fall by about 400000 barrels a day, so that the excess supply is less than half of this year, to about 900000 barrels a day.

    But Iran's oil supply increase may counteract the effects of non-opec production.Iran's government plans to sanctions after next year, will increase oil production, at least 1 million barrels per day accounted for about 1% of the world's oil supply, but the market for Iran can increase how much, and when to start production remain sceptical.

    Two other OPEC delegates also hopes that the oil market will be stronger after the first half of next year.One of the representative said that when the market began to restore balance to the beginning of 2017, brent oil prices may rise above $60 a barrel.

    Another representative, says he expects oil prices remained weak, brent oil prices around $40 a barrel - 45, by the end of 2016 will rise to 50 - $60 a barrel range.

Report this document

For any questions or suggestions please email
cust-service@docsford.com