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Wednesday, 7 December 2016

Saudi Arabia's Early Christmas Gift To Oil Markets Won't Last

Saudi Arabia's Early Christmas Gift To Oil Markets Won't Last:
"Last Wednesday, Saudi Arabia finally pulled it off. The world’s largest oil exporter and de facto OPEC leader led the 14-nation oil producing cartel in its first oil production cut agreement since 2008.

Much has already been said about the deal since it was reached, while markets have reacted in jubilation. The following three trading sessions after the deal was reached to trim OPEC production levels by 1.2 million barrels per day (b/d)  - more than 1% of global output - both global oil benchmark, London-traded Brent crude and its U.S. counterpart, NYMEX-traded West Texas Intermediate (WTI) crude had spiked by around 15% to levels not seen since mid-2015.

On Tuesday, markets did pull back some as traders engaged in profit-taking. Brent crude fell 0.1% to $54.93 a barrel while WTI futures were trading down 0.4% at $51.59 a barrel."

'via Blog this'