Oil prices fell on Monday morning with continued volatility in the global stock markets and on the back of a…
Stock markets: Global stock index has slipped between steep losses and small profits in recent weeks, with Dow Jones Industrial Average, S & P 500 and Nasdaq Composite on track for its worst month in over eight years . The stock exchange’s turbulence has weighed on energy markets, and Brent comes down about 1
2% from four years high at the beginning of the month. The shares showed signs of stabilization Monday morning.
US. Dollar: The greenback, which tends to have an inverted relationship with dollar-converted raw materials like oil, has been strengthened in the last month. The WSJ Dollar Index, which measures the US currency against a basket of 16 of its peers, was up 0.06% Monday morning.
Iran: US sanctions against Iran’s oil industry begin to come into force at the beginning of next week. “In comparison with the high Iranian exports in the spring, the market could thus be removed at a total of 1.5 million barrels a day. The supply situation is likely to be tightened further in the short term, with OPEC’s willingness to offset the deficit” analysts at
wrote in a note Monday and predicted that Brent would again rise above $ 80 a barrel this year. In May, President Trump took the US out of an international agreement from 2015 to fight Iran’s nuclear programs, which reinstated the stage for the reorganization of OPEC.
aizhu chen / reuters
Saudi Arabia and OPEC: Saudi Arabia – the de facto chief of the organization of the petroleum exporting countries – and its non-cartel partners, led by Russia, have gradually increased raw production since the summer, in part to compensate for the Iranian deficit. “It is a sure bet that Saudi oil output will reach 11 million barrels a day before the end of the year. The conclusion is that Saudi Arabia and Russia will have added almost 1.5 million barrels a day in the second half,” says Stephen Brennock, an analyst at the broker PVM Oil Associates Ltd. “This largely reflects or decreases in Iranian supply. It can therefore be said that the Saudi Arabian energy association has done a good job to compensate for the decline of Iranian exports, at least at present, “he wrote in a comment Monday.
PLC reports third quarter earnings Tuesday.
Write to Christopher Alessi at [email protected]