11/09/2014
At their lowest level in 16 months
Political factors pushing heavily on oil prices
Futures prices continued to mix and Brent crude oil at record levels below $ 100 a barrel today, a volatile transactions falling for the fourth straight day, under pressure from the power supply. And did not stray far from its lowest price in 16 months recorded recently as reflected fears of a declining supply due to violence in the Middle East. Brent crude fell 21 cents to $ 99.99 a barrel, is still low 10.5 percent since the beginning of the current quarter, registering the biggest decline since the second quarter of 2012. And the price of crude oil futures to $ 93.09 0.43 US dollars per barrel for a three-day decline after falling 63 cents on Monday. The analyst who specializes in oil that political factors still form factor down oil prices, as both Europe and America to exercise comes to Russia economically.
He said for the ' economic ' Dr. Rashid Al-abanumay, President of the Center for policy and strategic Outlook that nothing on the horizon to suggest oil prices rising again because of the complex political matters by the European system of America toward Russia that completely dependent on oil as a key resource for its economy. He said: ' political price reduced to very low levels and could reach approximately $ 50 a negative impact on the Russian economy '. The political pressure on the oil prices, that's what you want both Europe and America to put pressure on Russia economically, particularly the political factor is currently the most influential in the economic factor. Niger said that if oil prices dropped to very low levels, the economic recovery and development will benefit both European and American, and at the same time weakened the Russian economy, the province some sort of influence in Russia as there are States like the Gulf has the capacity to continue supplies to world markets.
He continued: ' the Gulf States have large fiscal surpluses to help the growth of the economic for four years, unlike Russia which require resources and fiscal surpluses to protect its economy from the impact of the sanctions imposed by America and Europe. He said that the oil producers ' have no reason to engage in lower oil prices to place additional pressure on Russia '. Niger said that political problems between Russia as a producer of oil and the European countries and America as a consumer of oil ' is a factor of pressure on oil prices ', but it is too early to predict the factors that have led to lower oil prices now.
But oil analyst Hajjaj boukhdour said in an interview with the ' economic ' stimulus expected to occur there will be a significant factor in the return of oil prices to above $ 100 a barrel, but the price will remain $ 95 to $ 100 a barrel. Boukhdour said: ' those stimuli in intensity of hurricanes in the Gulf of Mexico is expected to hit America during the months of September and October, which disrupted oil installations in America, as well as the late arrival of oil ships, so there will be a shortage in supplies due to the hurricanes '. He said: ' this will reduce or decline the US oil inventory due to, therefore the US inventory data come out lower than expected, which means a rise in oil prices. Among the incentives also the dollar before the currency, where the European Union's policy on the reduction of the exchange rate of the euro against the dollar, by raising the interest rate '.
He said global economic indicators and the next will be the winter season also included incentives that would help oil prices rising; the stimulus will be a factor for rising oil prices, unless there is a geopolitical factors. And the drop in oil prices and boost talks on the Iranian nuclear file, and speculation in the markets for a profit, and the high exchange rate of the dollar against foreign currencies, adding to the American rock; oil production factors began to form a strong presence in the market. Those factors led to the decline in oil prices and the pot without $ 100 a barrel.
