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© Reuters. Investing.com – The reluctance of US President Donald Trump to accept a nuclear deal with Iran, celebrated by his predecessor Barack Obama with 5 European countries in 2014, has been at the center of the market dynamics in 2018. Since the Election campaign of 2014, Trump showed signs of dissatisfaction and threats from the United States to abandon the agreement when he was elected, which is materialized in May of this year. In addition, the US president has vowed to retaliate against companies and countries doing business with the Iranians, with the aim of reducing the Islamic Republic's exports to zero and economically smother the rival country. .
With the imminent exit of international markets in Iran in November of this year – Trump's deadline for businesses and countries to cease trading with the country – traders began trading futures contracts aimed at increase oil, which resulted in price increases over the period up to the US $ 76.90 in WTI and $ 87.00 in October. This month, however, the United States lifted the sanctions, extending oil imports from 8 countries of Iran unpunished for some time.
Meanwhile, Saudi Arabia and Russia have increased production to offset the withdrawal of Iran's oil from Iran. market. But the easing of sanctions, as well as US shale production and export records, have flooded the international oil market, creating oversupply, resulting in a dramatic fall in prices in November
. sharp drop in the price of oil has mobilized OPEC and Russia, with market speculation about reduced production and to what extent. The supply reduction agreement is only achievable with the participation of Saudi Arabia and Russia. This alliance was symbolically celebrated at the G20 meeting last Saturday when Saudi Crown Prince Mohammed bin Salman was publicly isolated because of the charge of being the main blame for the journalist's badbadination Saudi badx. Consulate in Istanbul, Turkey. The compliance was interpreted as a breakthrough in the common position of the two countries at the OPEC meeting held last Friday in Vienna.
Throughout the week, the WTI price ranged from $ 50 to $ 54. and $ 58-63 at Brent. The days that ended higher were buoyed by production cuts, especially as the company announced a reduction of 325,000 barrels a day in production to offset the drop in prices. In addition, Monday, the G-20 meeting, celebrated during the truce of the trade dispute between the United States and China, was celebrated. The closed days downstairs have been moved according to Russia's speculation of an agreement in reducing global production.
Until Thursday, the day of the beginning of the meeting of OPEC, always the reduction of production and quantity. On Friday, he refused to reduce his production under US and US sanctions. The agreement, reached after the agreements between the Saudis and Russians, began on January 1, 2019, with 800,000 members of OPEC and 400,000 non-members of the cartel.
Also during the week, Qatar announced Monday on Friday. The objective of the kingdom is to focus on the production of which he is the largest exporter and to criticize the role of Saudi Arabia within the organization, accusing him of not give voice to other countries in cartel decisions. But the country has reduced its participation in the production of OPEC with 600,000 barrels a day.
Stay tuned to Investing.com Brazil and do not miss any development of WTI and Brent oil prices and negotiations regarding the reduction of supply in the market. (f, b, e, v, n, t, s)
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