Energy Oil Pumps

Oil – where to now?

Oil is trading at an all time low and tipping the barrel at around about $48. With no major changes in line and analyst hoping for this to keep falling lets look at the OPEC sentiment.

OPEC has stated that it will not lower production or output as most US shale production will fail to be profitable at current prices. So OPEC is holding up its ego at an OPEC Basket Price of 41.05 on the 13 Jan 2015.OPEC BASKET PRICE

Oil is reaching a point where it can no longer fall without major exporting nations cutting production. Russia is already under severe financial pressures being the second largest producers with a daily output of 10.5m barrels a day shy of Saudi Arabia, who have announced major financial downsides for the Kingdom. At $40 a barrel and below production cuts are a must as production cost will be beyond profits for some oil producers.

A single national production cut by Saudi, Russia or another leader will trigger a bounce back and long rush in the price of oil immediately. It just matters on who pulls the trigger first.

We are long on Oil from $45  and below as there is a strong believe that major cuts in production are pending.

Posted in Commodities, Politics and tagged , , , , , , , , , , , , .

One Comment

  1. Trade with me, get 100$ just for sign up. the world’s largest social investment
    network, where millions of clients earn by copying the trading actions of our
    best traders.In our community, traders who use eToro’s CopyTrader™ are 60%
    more likely to profit. Trading in the world’s most popular markets has never been easier.
    Join into the fast-paced world of trading, discover traders who match your strategy and use their wisdom to

    Also visit my web page … get 100$ for sign up

Leave a Reply

Your email address will not be published. Required fields are marked *