Oil: a new struggle for the market between East and West

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Tensions in the middle East makes major market participants to buy futures contracts for oil, thus pushing oil prices up. Today with the opening of the market the price of mark Brent traded at $72,44 per barrel. Shale oil WTI is at $62,45.
At the moment, the participants evaluate the US pressure on Iran. The United States urgently evacuate its Embassy in Iraq due to the actions of Iran. On the other hand, the sharp increase in oil reserves in the United States seemed to many another manipulation. And the surprise at 6 million barrels is not much impact on the market.
As we understand it, using US as leverage on the global oil market of Iran and Venezuela. When OPEC, I took the decision to reduce oil production since the beginning of this year, America began actively to build. An interesting situation: the price of oil exceeded $65 a barrel, and the US has significant volumes in order to export oil at a discount.
In the near future will begin active struggle for the oil market between the East and the West. Everyone understands that the anticipated meeting of OPEC in Vienna on 26 June, will be significant, because it will take an important strategic decision for the further stabilization of the situation on the global oil market.
Considering comfortable price for both exporters and importers in the area from $70 to $75 a barrel, OPEC will continue to support prices in this range. It is not excluded that the decision on production cuts to offset the effect of trade wars between the US and China.
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Gaidar Hasanov
Expert
“International financial center”