Monthly Archives: March 2016

Floating Storage in decline-will WTI increase?

March 21, 2016 0 Comments

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Floating storage is in less demand than it has been. Is the supply glut over and what will this mean for West Texas Intermediate (WTI) prices? The reduction in storage needs points to stabilization in the WTI market. Are we on an upswing?

Although stockpiling of oil on the ground is far from exhausted, the cost of storage at sea has risen, making it no longer profitable to use this type of alternative when storing excess oil.

It is because the price of rental and storage on these ships has increased substantially due to high demand for crude oil, the daily rate on the route from Japan to Saudi Arabia increased according to data from the London Stock Exchange to 66.64 dollars,

This means an increase of 30% compared to the previous month. According to Bloomberg and Gibson Shipbrokers LTD, an oil company would lose about 7.6 million dollars if they wanted to protect for six months at sea in a ship two million barrels.

The WTI basket is increasing its monetary value since US oil production is finally falling and threatening to fall to less than 9 million bpd for the first time since November 2014, which makes the oil market no longer so flooded with that commodity.

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$40 Oil, will it keep climbing?

March 8, 2016 0 Comments

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Oil is trying to make a race upwards of $ 40 per barrel, is the goal of all oil countries included and not included in the Organization of the Petroleum Exporting Countries (OPEC). Many companies are associated with this vital nonrenewable resource for life in the modern world; we will see if it can sustain the trend.

Independently, it is positive for the world economy (private and public) to see the rise in prices. We may still be looking for an abundance of supply, but any upward movement is refreshing.

The rise in oil prices drives stock markets, given the optimism generated by the cut in global output. There is a world commission made up of five oil producing countries: Kuwait, Algeria, Venezuela, India, and Oman, which are members of OPEC. They are responsible for monitoring compliance with the agreement to reduce world oil production by 1.2 million barrels per day.

These company and country-driven tactics seem to bear fruit and rescue prices from below $ 29.80 per barrel per OPEC basket just as it was a little more than a year ago in the first quarter of 2016, to more than $ 40 a barrel as it stands currently.

It means they're doing things right to avoid another downturn and continue on an upward trend and to break financial barriers steadily.

By the end of 2017 the price of all the oil baskets: West Texas Intermediate (WTI), OPEC and Brent is expected to exceed the $ 50 barrier.

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