Oil: US skillfully manipulate the price and market
Oil prices are falling the second day in a row mainly because of the oil reserves in the United States. The American petroleum Institute and energy information Administration of the USA has published data on stocks which are fundamentally different from the expectations of many market participants.
The oil reserves in the U.S. increased by 4.7 million barrels, when the majority of large investors on the contrary expect their decline. As you can see, the U.S. is trying to manipulate the market by announcing so many startling figures on oil reserves, thus bringing down prices. In my opinion this is done on purpose, because the tensions in the middle East poses a threat to the sharp rise in oil prices.
Including the tense situation between USA and Iran in which the two sides exchanged tough remarks against each other, thus creating the threat of full-scale military conflict.
In this regard, the major market participants can not decide on the global oil market, since the inconsistency of the influence of external factors forcing market participants for the most part be out of the market. And those who already had futures contracts on oil for the purposes of speculation, trying to fix the previous profits on contracts in order not to lose the advantage.
We need to understand one simple thing: war between the US and Iran will not. America is now in a good position to fight on all fronts. A trade war with China takes away many forces and time. On the other hand, although the US win the global oil market and dream to be the only exporter of electricity. But this plan is primarily to prevent the OPEC countries led by Saudi Arabia and Russia.
The basic scenario for the reduction of oil production by OPEC countries+ in order to stabilize the global oil market, the US proved beneficial in terms of what the US has stepped up oil production while the rest of its cut. The prices for “black gold” since the beginning of this year actively growing. The price range from 65 to $ 75 is optimal for both exporters and importers. Higher prices for the U.S. are not acceptable in the sense that the United States at the same time import oil, in particular they are going to buy from Russia, as Venezuela supplies ceased in the form of sanctions.
Given the contradictory factors influence the price of oil will be under pressure. Many market participants are waiting for the OPEC meeting next month where a decision will be made on the renewal of the Covenant, the reduction of oil production by the end of this year. Thus this scenario is quite likely, as the trade war the United States and China threatens to reduce global demand for oil due to the decline in the growth rate of the economy of many countries.
“International financial center”