OPEC COMMENTS ON THE CRUDE OIL PRODUCTION AND PRICES

The United States Crude inventories witnessed a major drop on Thursday. At the same time, the prices of oil saw growth. The oil rates were restricted due to the mixed signs for its demand from the world’s leading importer of crude oil i.e. China.

The main reason for the lower demand for crude oil is the lower industrial output in the month of October.

If the current reports are to be believed, Brent futures witnessed an increase of 0.8 percent. It went up to 47 cents from 62.68 cents on Thursday. On the other hand, the United States West Texas Crude oil rose to 57.60 percent.

In the coming year, the economy is expected to witness a downward alteration in the crude oil demand and prices, said Mohammed Barkindo (the Secretary-General of OPEC). The Secretary of the Organization of the Petroleum Exporting Countries further added that this downward alteration will mainly come from the United States.

This is because the United States industrial output is expected to grow by a maximum of 400,000 barrels every day (which is pretty lower than the estimated growth).

The Forecast of Oil Production and Price by the Organization of the Petroleum Exporting Countries

As far as Mohammed Barkindo’s comment on crude oil is concerned, it seems as if the secretary of OPEC promotes the crude oil prices.

But if Howie Lee’s (the Singapore Economist) comment is taken into consideration, there is no way for the Organization of the Petroleum Exporting Countries to estimate the production and supply of this commodity for 2020.

According to Howie Lee, oil supply has not seen major changes. That being said, the commodity is sold at the same rate from the beginning of November.

Mohammed Barkindo’s remarks and predictions went completely against the estimations made by the United States Energy Information Administration (EIA). According to the EIA, the production and crude oil prices were expected to set new records in 2019 and 2020. So far, the statements of EIA have not proven true.

Crude Oil Production Cuts and Prices

While the stock analysts estimated growth in crude oil by as much as 1.6 million barrels this year, the American Petroleum Institute confirmed a major fall in crude oil inventories on November 8.

The crude oil witnessed a drop by 541,000 barrels. According to the further reports given by the American Petroleum Institute, Distillates inventories and Gasoline stockpiles saw an increase this month.

The Organization of the Petroleum Exporting Countries and its partners such as Russia are planning to conduct a meeting on the 5th or 6th December to plan the output policy as well as oil production.

The main purpose of the meeting is to support crude oil production, supply, and prices. According to Barkindo, it couldn’t be said if more output cuts would be required. If OCBC’s statement is taken into consideration, no output cuts or reduction in the crude oil production will be seen in the coming days.

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The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

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