28/01/2015
The growing strength of the US currency strengthens wave decline in crude
Oil ignores «OPEC» expectations and will continue to fall below $ 48
Crudeoil pricesignored therecent positivestatements"OPEC"fellyesterdayBrent crudebelow $48a barrel,andalsore-price"OPEC"basketdeclineagain,anditis constantlyaffected bythe growingstrength ofthe US currency.
Abdullahal-Badri,Secretary of theOrganization of Petroleum ExportingCountries"OPEC", saidyesterday, "Theoil pricesat current levelsprobablyreached its lowestlevelsdeclinehas beenmoving upvery soon."
This comesafter hewentcountries such asKuwaitandRussiatoapprove theausteritybudgets, whileI tookthe samecurvemajor oilcompanies such asBP.
Andrecorded"OPEC"crudebasketandhita new lowprice of $42.90a barrelyesterdayfor $43.69a barrel on theprevious day.
Adaily reportof the organization"Thebasket price, which includes12crudeproductionfromMember Statesbreaking the barrier of$ 43a barreldownafterthatremained atthat pricesince mid-January(Jan)this month.
The report pointed outthat the basketthoughrelativelycohesiveshowa pricecomparedto previous periodsat the end of2014andbeginning of2015, wheretheyrecordeddaily lossesexceedtwo dollars abarrel.
Thedecline inUS crude oilinthe Asian marketyesterdayfor the fourth consecutivedaynear its lowestlevelinsix years,such asPetroleum Institutedata onoilinventories in the UnitedStates is the largestconsumer of oilin the world,Brent crude fellfor the third consecutivedayto tradebelow $48a barrelamidlowexpectationsPriceto$ 30 a barrel.
TheUS crude oiltradingaround $44.90a barrel fromthe openinglevelof $45.12andrecorded the highest levelof $45.33and a lowlevelof $44.80.
AndBrent crudetradingaround $47.80a barrel fromthe openinglevelof $48.27andrecorded the highest levelof $48.36and a lowlevelof $47.69.
US crude oilandfinishedthe firsttrading yesterday, down by0.5per cent in thethirddaily lossin a row andthe lowestlevel sinceMarch2009levelof $44.34a barreldue toan oversupplyin the UnitedStates,andBrentcruderose 0.9per cent.
And lostWTIUSmediator17cents to $44.98a barrel afterhostelfor the lowestlevelin thesessionto $44.35a barrel on Monday, nearits lowest levelinnearly six years.On the New YorkMercantile Exchangecrude oildelivery roseMarchby0.40cents, or about0.87per cent,to trade at45,$ 55 a barrelduring Europeanmorning trade,andpricestradedin a range between.44.82and 45,$ 65 a barrel.
Onthe London Stock Exchange, Brentoildelivery roseMarchby 32cents,or0.66percent,to trade at48,48 dollarsa barrel.
According to theNew YorkMercantile Exchange,futurescontracts for crudeoiltradein MarchtoUS $45.26a barrelandroseby 0.23per cent.
Andhasalreadytradingathighof $45.28a barrelat the samesessionon the Nymex,Brentoilpricefor the month ofMarchrose by0.35percenttotrade at31.48dollars a barrel.
He saidthe "economic"HenrykeptVicePresident ofthe Austrian-Arab Chamber, "Therise in the dollar's exchange rate againstother currenciescontributed to the continuingwave ofdeclinesin oil prices."
"The"OPEC"has along-term visionfor the development ofthe oil marketand hasfullconvictionandconfidence ofa recovery inthe marketsoon",which was confirmed bythe Secretary General of"OPEC"and beforea number ofoil ministersof the Organization.
"Thesignificantimprovementis notcurrently on the marketthat are stillexperiencingsteady decline,but it is certainthat the secondhalf of thisyear will seean improvement inthe market."
He added that"the continuation offalling pricesmeanthat the marketis stillin a state ofturmoilandinteractionsbetween the differentparties andoverlappingandconflictingfactorson a daily basisaffect theperformance of the market."
He continued that "OPEC", "concerned the status ofthe marketfor years to come, andturn its focusto the issue ofmarket sharesandhow to protect yourinvestmentin this area, which isreflected inthe recentBadri's remarkswhen he said thatoil pricesat current levelsprobablyreached its lowestdegrees ofdecline."
Hafizexplained that theideaof reducing productionexcluded from theaction agenda"OPEC","wherethere areconvinced thatthiswould causetemporarydamageandfutureeconomies ofthe Member States."
For his part,Dr. PhilipDepechepresident ofthe European Initiative forEnergy"Thestrongtrendbegan totranslateto actualproceduresofvarious countriesin order tocut spendingand rationalizebudgetsto cope withthe case ofthe sharpdecline incrude oil prices."
"Thisprocedure maybe optimizedinthe light of thecurrentdifficult topredict the course ofpricesin the coming periodin thelight ofincreasing pressure onproducersandeconomiesso as not tobe repeateda large internationaleconomic crises."
Anddecided to"BP"Britishfreezesalariesthis yearin various parts ofthe company,ina move designed toreduce coststo cope withthe significant declineinoil prices.
The Kuwaiti governmentyesterdayapproved thefirstausteritybudgetincludeslessexpensesincreased by17.8per cent higher thanplannedin the past year.The Russian governmenthas also prepared aplanto tackle the crisisdevelopedfor a year andprovidesa newstructural reformsto avoidfinancial reservesto spenda year or two.
For his part,RichardEnsorChairman of the FinanceOrganizationEuromoneyInternationalfor "economicstresses that" thetreatment ofthe issue ofthe economic downturninmanycountries of the worldand the reform offinancial institutionsand the development ofeconomic legislationis the only wayto increasegrowth rates.
"Thesolution to thecrisesinthe two biginternational tribunalsUkraineandGreecewill restorethe stabilityof the international economy,andthenheadingtothe energy marketgrowth andthe fairbalancebetween the interests ofproducers andconsumer prices."
Hesaid"crisissharp declineextendsits influencetothreatenthe economies ofmany of theexistingstates toexportoil..must be foundto restoreeconomic balanceandavoid the negativeeffectshavemechanisms, and will notbe achievedunlessthe coordinationand international cooperationandwide."
