Osama Soliman from Vienna
Oil analysts predicted continued price fluctuations this week due to the lack of clarity of the course of trade negotiations between the United States and China, which face repeated failures and breakthroughs and successive, which is reflected quickly on crude prices.
Specialists noted that coalition producers in the "OPEC '", which will meet in Vienna next month, will review the market situation and evaluates the latest data demand and supply most of the expectations and go to the extension of the agreement despite the difficulties, which Russia is facing in reducing production, arguing stuck to Saudi Arabia by All that is necessary to balance supply and demand to keep prices at healthy levels.
Specialists said that "OPEC" has a vision of profound developments in particular market geopolitical risks growing in the Middle East and the continued increase in US supplies, despite the relative decline in drilling activities, Marjaheen that the new procedures for the coalition producers most likely will be strong enough to move towards restoring balance early next year.
In this context, he says "Al-iqtsadia", Ross Kennedy, Managing Director of "Q-HIV" International Energy Services, the price fluctuations remain the dominant feature of the market as a result of the lack of confidence and uncertainty in light of the continuing trade disputes, referring to the decline in oil futures as a result of lack of satisfaction to the development of trade talks between the United States and China, leading to a decline in the morale of the investors at the end of the week.
Another part, explained to the "Al-iqtsadih", Rudolf Hopper, energy researcher and director of one of the specialized sites, that oil prices may witness fluctuations in the next two weeks until the first phase of the trade deal is resolved in the middle of next month, noting that the imposition of new tariffs next month Consumption may hurt ahead of US holidays and elections next year, and the administration is likely to ease talk of tariffs in the coming period.
Another part, says to "Al-iqtsadia" Andre Aaneev, an analyst with the Bulgarian researcher and energy affairs, said that oil prices receive good support from the producer's commitment to "OPEC '" to cut production and improve the matching levels, indicating that the next meeting of producers next month will result in a likely to promote a plan to restrict supply to accelerate efforts to restore market balance in the light of the abundance of large unexpected supply next year.
In turn, says to "Al-iqtsadia", Matthew Johnson, an analyst at the International "Ooxeira" Consulting, said that the extension of the reduction of production procedure is not new, and expected, and will support no doubt prices in the remaining weeks of this year, expected in the case of commitment to Iraq and Nigeria quotas to cut production that this will lead to reduced oil supply by ranges between 300 thousand and 400 thousand barrels per day, contributing to a balanced access to six following the next market during the first half of the year 2020, with the possibility of a shortfall in supply in the months of the year.
Johnson said that "OPEC" production is moving to a continuous decline, where there are currently more than 29.5 million barrels per day, noting that Saudi Arabia bears always the brunt of the cuts, pointing to the International Energy Agency, which is likely continuation of the expectations of "OPEC" production fell to about 28.2 million barrels per day because of Iran and Venezuela sanctions and the potential to deepen production cuts.
Furthermore, oil prices fell at the end of last week from the highest level in nearly two months in light of the continuing uncertainty about whether the United States and China could reach a partial trade agreement, the depth of concern about the global economy and expectations of the oil world demand growth rates.
According to "Reuters", futures fell for global crude measurement Brent 42 cents, or 0.7 percent to $ 63.55 a barrel, the record WTI of $ US 58.14 a barrel, down 44 cents, or 0.8 percent.
Michael McCarthy, chief market experts at the "CMC" markets and brokerage inequities in Sydney, said that "the main factor for the forecast demand for oil is the ongoing trade negotiations between the United States and China now."
On the other hand, US energy companies reduced the number of oil rigs operating for the fifth week in a row, and the number of rigs fell 24 percent year on year as producers cut spending on new drilling operations.
Baker Hughes Energy Services Company says, in its weekly report, which has a follow-up document, the drilling companies turned off the three excavators oil in the week ending 22 November (November), to drop the total number of active rigs in the United States to 671, the lowest level since April 2017, and in the same week a year ago, there were 885 oil rigs running.
The number of active oil rigs in the US, a preliminary indicator of future production, fell for the 11th straight month as independent exploration and production companies cut spending on new drilling while focusing more on increasing profits amid lower energy prices.
Despite the decline in the number of rigs, the US oil production continues to rise, partly due to increased productivity to record levels in most oil shale basins in the United States.
