News center
Xinhai wins opportunities and future with innovation.
Position:
Homepage
>
>
>
Bloomberg survey: sanctions on Iran tighten supply outlook, oil market bullish sentiment next week

Bloomberg survey: sanctions on Iran tighten supply outlook, oil market bullish sentiment next week

(Summary description)According to a survey released by Bloomberg on Friday (May 11), crude oil traders and analysts have turned bullish on US crude oil prices next week.

Bloomberg survey: sanctions on Iran tighten supply outlook, oil market bullish sentiment next week

(Summary description)According to a survey released by Bloomberg on Friday (May 11), crude oil traders and analysts have turned bullish on US crude oil prices next week.

Information

  According to a survey released by Bloomberg on Friday (May 11), crude oil traders and analysts have turned bullish on US crude oil prices next week.

 

  Of the 43 traders and analysts surveyed, 29 (67%) were bullish, 9 (21%) were bearish, and 5 (12%) were bearish.

 

  US WTI crude oil futures closed up 0.98 US dollars, or 1.41%, in the week of May 11 at 70.70 US dollars / barrel, with the highest up to US $ 71.89 / barrel and the lowest down to US $ 67.63 / barrel. Brent crude futures closed up $ 2.25, or 3.01%, at $ 77.12 per barrel.

 

  Oil prices fell on Friday, but were still close to a three-and-a-half year high, as the United States imposed sanctions on Iran again, tightening the prospect of Middle East supply, while global crude oil production was only keeping pace with rising demand.

 

  The U.S. is re-imposing sanctions on Iran and has abandoned an agreement reached at the end of 2015 that limits Tehran's nuclear ambitions in exchange for lifting U.S. and European sanctions on Iran. Iran's oil production accounts for about 4% of the world's total.

 

  The global oil market is close to equilibrium, with Saudi Arabia, the largest exporter, and Russia, the No. 1 oil producer, taking the lead in curbing oil supplies to support oil prices.

 

  "It's a bullish thing: Iran, Venezuela, Saudi Arabia lacks behavior to quickly bring more oil to the market," said John Kilduff, a partner at Again Capital in New York.

 

  He said prices could strengthen later in the day as traders support their positions. This is definitely not a short selling environment before the weekend.

 

  US light crude oil futures closed down $ 0.66 on Friday to $ 70.70 / barrel, hitting a three-and-a-half year high of $ 71.89 / barrel on Thursday.

 

  The benchmark Brent crude oil price fell to a daily low of $ 77.04 / barrel at the close on Friday. On Thursday, the price of Brent crude reached $ 78 per barrel, its highest level since November 2014.

 

  This week, Brent crude oil prices are expected to rise by about 3%, while US crude oil futures prices are up 1.4%.

 

  Many analysts expect oil prices to rise as Iran's exports decline.

 

  Rainer Seele, CEO of Austrian oil and gas company OMV, told the German daily Handelsblatt that he expects prices to rise as the United States takes steps to reimpose sanctions.

 

  "It's unclear what specific sanctions the United States will implement. But I expect the price of Brent crude in the North Sea will be closer to $ 80 than $ 70," Seele said in an interview.

 

  US investment bank Jefferies said in a report that Iranian crude oil exports are expected to start falling in the coming months.

 

  The bank said: "We expect that Iran ’s exports around October will reduce by 500,000 barrels per day (barrels) and eventually reduce by 1 million barrels per day."

 

  However, there are indications that other members of the Organization of the Petroleum Exporting Countries (OPEC) will increase production in response to a decline in Iranian crude oil production.

 

  Jefferies said that OPEC has the ability to "replace Iran's losses", but added that "even if physical supplies remain the same ... the market will still face low levels of idle capacity."

 

  Outside OPEC, soaring U.S. crude oil production could help fill Iran's supply gap. Last week, the daily output of US oil reached a new high, reaching 10.7 million barrels.

 

  This number has risen by 27% since mid-2016, meaning that US output is gradually approaching Russia, the largest oil producer, with a daily output of about 11 million barrels.

 

  The number of rigs per week of the US service Baker Hughes Division shows that the American drilling company has added 10 drilling platforms, with a total number of 844. The number of rigs is a forward-looking indicator of production. (From the International Petroleum Network)

Scan the QR code to read on your phone

Phone:+86-317-5907000/5606579

Address: Middle section of Nanshugang Road, Huanghua Port, Bohai New District, Cangzhou, Hebei Province

E-mail:xinhaigroup@hbxhhgjt.com

 

Hebei Xinhai Holding Co., Ltd.  Copyright ©  2019 All rights reserved     冀ICP备14018862号-1