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Energy & Commodities

Oil supported by suggestions of “Extraordinary Measures”

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Posted by Lukman Otunuga - FXTM Market Analysts

on Wednesday, 11 October 2017 05:15

wti 1 18

Oil prices edged higher during Tuesday’s trading session, as investors pondered over what “extraordinary measures” OPEC may implement to rebalance oil markets in the medium to long-term.

Although the commodity got off to a rough start last week, after traders questioned the sustainability of the rally, recent comments from OPEC stating that there are clear signs that markets were rebalancing, have supported WTI crude. With OPEC’s Secretary General Mohammed Barkindo almost pleading for U.S. shale oil producers to help reduce the global supply glut, could the tough tug of war between U.S. shale and OPEC be coming to an end?

It has certainly been a tricky year for OPEC, especially when considering how U.S. shale production soared nearly 10%, despite the cartel's valiant efforts to cut supplies to prop up prices. Although Saudi Aramco plans to make “the deepest customer allocation cuts in its history” by cutting 560,000 bpd next month, its impact could be diluted if the U.S. shale producers see this as a Christmas gift.

As we head deeper into the final trading quarter of 2017, investors will continue to scrutinize markets for any fresh details on the “extraordinary measures” and signs of OPEC extending its production cuts beyond March 2018.

From a technical standpoint, WTI crude has staged an impressive rebound from the $49.08 level. A decisive breakout above $51.00 should encourage a further incline towards $52.40. In an alternative scenario, sustained weakness below $49.00, which is also under the 50-day Simple Moving Average, may open a path towards $47.80.

Catalonia independence in focus



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Energy & Commodities

Softs And Grains Fundamental Overview For September 2017

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Posted by Aquarium Investments

on Thursday, 05 October 2017 06:39

EN 1 Wheat

In September, USDA global wheat production estimates were revised slightly higher. Mainly due to better crop conditions in Turkey and Russia, estimates were raised to 744.85 million tons from 743.18 million tons in August. Based on the latest data, Russia is currently expected to be the top wheat exporter in the 2017/18 season year. Global wheat consumption is now expected to edge slightly lower from this year’s record of 738.7 million tons and reach 737.5 million tons next season year. Latest data are more bearish for global inventories, however, which are forecast to increase 16.5 percent to 263.14 million tons.



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Energy & Commodities

OPEC production/dollar weaken crude as Administration shows coal love

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Posted by Phil Flynn - The Resource Investor

on Tuesday, 03 October 2017 08:59

Oil prices are falling on reports of rising OPEC oil production, but the main culprit is likely the rising dollar.

Reports that Nigerian and Libyan oil production increased caused some selling as well as a report by Baker Hughes that showed the U.S. oil rig count rise by six, even as the natural gas rig count fell by one. Still reports of problems at Libya’s largest oil field that was shut since Sunday and a pledge by the United Arab Emirates to reduce production by 139,000 barrels per day in November puts the oil price fate in the hands of the dollar (see chart below). 

CRUDE OCT 2 17



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Energy & Commodities

The Other Gold Market Has Been Surging And So Has This Key Market

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Posted by King World News

on Friday, 29 September 2017 07:14

King-World-News-An-Extraordinary-View-Of-The-War-In-The-Gold-Silver-Stock-And-Commodity-Markets-864x400 cDespite concerns around refinery closures and inventory builds post Hurricanes Harvey and Irma, WTI Oil has traded constructively and, in our view, has the potential to reach $60+ as we head into the end of the year…

WTI Crude has broken through the trend line across the 2017 highs and this overall setup can be viewed as a triangle consolidation before the prevailing trend higher resumes. In fact, the break higher suggests just that (see chart below).

....continue reading HERE

also:

DANGER: Major Warning Indicator Hits All-Time High While A 2nd Plunges To All-Time Record Low!

 



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Energy & Commodities

Dan Steffens: Energy Sector Making a Comeback

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Posted by Financial Sense

on Thursday, 28 September 2017 06:43

EnergySectorThe price of oil is finally back above $50 and Dan Steffens, President of the Energy Prospectus Group, believes the remainder of the year will be quite bullish for the energy sector.

Market Direction Is Up

With demand projected to continue growing this year into next, inventories tightening and continuing to fall, and rig counts decreasing, we can expect oil prices to go up into year-end, said Steffens.

It’s interesting to note that in the first quarter, S&P 500 profits largely came from the energy sector. Yet, energy stocks have been decimated since then.

Steffens follows about 50 publicly traded companies, and almost all are down year-to-date even though they’re having a better year financially.

There's “this fear that there’s going to be a big collapse in oil and gas prices,” he said. “I don’t see it happening. I don’t see any way sub-$50 oil can be maintained and meet future demand for refined products.”

While Steffens doesn’t think we’re going to see $100 anytime soon, he believes we will hit around $65 oil in 3 or 4 months.

Energy Stocks Unloved

....continue reading HERE

 

Also Consider: Dan Steffens: Energy Sector Massively Undervalued (Podcast)



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