hello everyone ,,
today i will talk about crude oil ,, Strong OPEC compliance has led to a rally in the Crude Oil market with the group’s “secondary source,” showing a nearly 92% compliance rate from the cuts agreed upon production cuts that OPEC agreed to in late 2016. Despite the encouraging data regarding reduced supply, the Baker Hughes Rig Count rose by 8 for the fourth straight weekly gain to a total of 591 active rigs in the US.
There has been a credible view passed around that OPEC’s reduction in supply is being countered by the Shale Drillers in North America extending production as Oil remains comfortably above the $50/bbl level. While we have two competing fundamental developments with a reduction in OPEC production and an increase in US Shale Production, we have stability on the charts that could favor further upside.
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