Year1
< /br>
< br>
' (33)
< br>
< /br>
< br>
' (33)
< br>
< /br>
< br>
' (33) Landline:
' (33)
(33)
' B(33) News
Saxo Bank of Denmark ( B ) said last Friday (July 2) that for those crude oil investors looking for signs that oil prices will continue to recover, instead of struggling with the production freeze agreement between major oil-producing countries, it is better to evaluate the U.S. crude oil supply. quantity, this will perform better.
'The head of commodity strategy at Saxo Bank said in an interview that day that although OPEC members and other oil-producing countries will meet in Qatar on Sunday to discuss an agreement to freeze production, this will have a negative impact on oil prices. The impact will be limited as crude oil production in several participating countries is already close to record highs.
' He pointed out that at a time when the oversupply of crude oil is caused by the U.S. shale oil boom, the rebalancing of the oil market depends more on U.S. oil extraction activities.
'Oil prices have rebounded since mid-month on speculation that countries including Saudi Arabia and Russia, the largest members, will agree to freeze crude oil production. But he said that in the cat-and-mouse game ahead of the Doha talks on October 1, even though various oil-producing countries have made various comments, there has been no clear action to curb crude oil supply.
'The market can be fooled, and we have been fooled,' he said. Oil prices have almost recovered since the first signs of verbal intervention in March. So a lot of progress has been made without taking any action, so I think at this stage the oil producers would be very satisfied if they could just convince the market that they could take action if necessary.
'B also said that although oil-producing countries around the world are buying time and waiting for the market focus to shift from oversupply to rising demand, US oil producers are definitely the potential driving force to rebalance the oil market.
' When talking about U.S. oil producers, he pointed out that U.S. oil producers have the ability to respond faster to changes in oil prices. He warned that a surge in oil prices to US$1.00 per barrel could prompt producers to pump more oil.
' Goldman Sachs ( ), UBS (B) and other institutions have previously stated that if oil prices rebound to a level that is sufficient for the United States to increase production, the recovery in crude oil prices may be short-lived.
' U.S. oil production soared to an average of 10,000 barrels per day last year, the highest level in more than three years. By the beginning of this year, U.S. production had dropped to about 10,000 barrels per day. At the same time, the number of oil rigs drilling in the United States has fallen to its lowest level since the beginning of this year.
'It is added that the market is still likely to achieve equilibrium in 2018. The International Energy Agency has warned that current investment cuts due to falling energy prices have increased the likelihood of an oil shock surprise in the near future.
WhatsApp
