OPEC at the next scheduled meeting of the cartel on Thursday, according to forecasts, will not be able to come to a consensus and make a coordinated decision to change the terms of oil production.As they say representatives of the organization,Openwide success adopted 18 months ago, the strategy of “arm-twisting” in a situation with demand and supply in the market. Oil prices have almost doubled after sank toward 13-year lows earlier this year. Although the global oversupply continued to weigh on prices, in recent times, there are hopes that the situation will be resolved spontaneously.
The recovery in oil prices last month and a half has led to the fact that some members of the cartel have tempered activity in the field of coordinating efforts to reduce supply. Now on the agenda of an upcoming meeting of the cartel does not appear a question about changing the mining quotas of the participating countries. Still, we should not forget that the call for the lowering of production quotas is a force majeure, although some people mistakenly believe that OPEC is able to balance prices just as Central banks around the world its key rate to regulate the money supply in the markets. This is a false comparison.
Now the representatives of Iran, Iraq, Kuwait, Nigeria and some other countries in OPEC agree that the market can return to fundamentalanalyse. OPEC expects that oil production in the US will fall in 2016 to 430 thousand barrels per day due to the continued disposal of low-margin producers because of their failures in earlier periods, when they are no longer able to service their loans.Faster balancing of the market was facilitated by the disruption of oil supplies from Canada and Nigeria. However, still a record volume of oil reserves in the warehouses put pressure on prices. Returning to the situation on the market, today as of 09:45 MSK barrel of Brent cost $49,75, and barrel WTI – $49,64.
Aside from the oil,international Institute for management development (IMD) published a report in the run-up To the Commemoration in the United States, according to which the leader of the rating of competitiveness of economy is Hong Kong, surpassing the US position.To the leaders behind Hong Kong because the city-state has achieved high profnatalie innovates through low taxation, and secondly, it serves as a gateway of sorts for preministerial China, at the same time, because of the existence of one of the most powerful exchanges, providing access to the global capital market.
The composite Stoxx Europe 600 index at the end of the day, has risen by 0.14%, however the trading volume was only about one-third of the average since the beginning of the year, because on the stock exchanges there were no investors from the US and the UK because of national holidays. Shares of Volkswagen (VOW) rose 1.5% ahead of quarterly corporate reporting, despite the fact that the scandal with the fraud level of the exhaust gases of diesel engines, the automaker is still far from complete.