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- Oil prices fell on Monday morning in a context of continued volatility in global stock markets and the strengthening of the US dollar.
- Brent, the global benchmark for oil, was trading down 0.36 percent to 77.34 dollars a barrel by mid-morning in London.
Intercontinental exchange
. - Futures contracts West Texas Intermediate, the US oil standard, traded down 0.40% to $ 67.32 per barrel at the New York Mercantile Exchange.
STRONG POINTS
Equity Markets: Global stock indexes have been hovering between heavy losses and modest gains in recent weeks, as the Dow Jones Industrial Average, S & P 500 and Nasdaq Composite are poised for their worst month in eight years. The turmoil in the stock markets weighed on the energy markets, with Brent down about 12% from four-year highs earlier this month. Shares showed signs of stabilizing Monday morning.
US Dollars: The greenback, which tends to have an inverse relationship with dollar-denominated commodities such as oil, has strengthened over the past month. The WSJ Dollar Index, which measures the US dollar against a basket of 16 peers, rose 0.06% this Monday morning.
INSIGHT
Iran: US sanctions on the Iranian oil industry are expected to come into effect early next week. "Compared to the strong Iranian exports in the spring, the market could be drained by more than 1.5 million barrels a day. It is therefore likely that the supply situation will tighten further in the near term, and that OPEC will be ready to make up the shortfall, "the group's analysts said.
Commerzbank
wrote in a note Monday, in which he predicted that Brent would still exceed $ 80 a barrel this year. In May, President Trump released the United States from a 2015 international agreement to curb the Iranian nuclear program, paving the way for the reimposition of sanctions against the OPEC member.
A pumpjack is seen on the Sinopec-operated Shengli oil field in Dongying, Shandong Province, China.
Photo:
aizhu chen / Reuters
Saudi Arabia and OPEC: Saudi Arabia, which de facto chairs the Organization of the Petroleum Exporting Countries, and its non-cartel producer partners, led by Russia, have gradually increased their crude production since the summer, partly to offset the Iranian deficit. "It's a safe bet that Saudi oil production will reach 11 million barrels a day before the end of the year. The end result is that Saudi Arabia and Russia will have added nearly 1.5 million barrels a day in the second half of this year, "said Stephen Brennock, an analyst at PVM Oil Associates Ltd.. It is fair to say that the Saudi-Russian energy alliance has made up for the fall in Iranian exports, at least for the moment, he wrote in a note on Monday.
IN FRONT OF
- The American Petroleum Institute, an industry group, publishes weekly data on US oil stocks on Tuesday, followed by official government data on Wednesday.
-
BP
PLC announces its results for the third quarter on Tuesday.
Write to Christopher Alessi at [email protected]
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