|
|
|
| Page Hits : 11152 |
|
 |
Mercantile Exchange Blog |
 |
 |
| |
Dec 3 2013 |
| WTI Oil price appreciates: Reasons Revealed!!!! |
| WTI mounted for a third day. One of the reasons may be the unexpected increment in manufacturing sector in U.S. Despite of increment in production of oil in U.S the stock of the oil dropped for the first time in almost three months.
Crude inventories declined by 700,000 barrels during this week. Due to yesterday’s data which showed U.S. manufacturing unexpectedly increased, futures increased by almost 0.5 percent in New York. This might be the other reason for increment in oil price.
The expansion of manufacturing output in Euro area, led by Germany than estimated last month may be the cause for price increment. The expansion of factories was the strongest in U.K since February 2011. In addition to this, there was growth in the U.S., China, the U.K. and other countries, which is supportive for energy demand going forward.
Today is an important day for the investors as there is going to be major announcements from the US which is bound to affect the market. The reason for fall in price may be the forecast about the crude stockpiles which has dropped for the first time in almost three months in the U.S., the world’s biggest oil consumer.
Libya, the Africa’s largest oil reserves and a member of OPEC was affected by clashes and protest which might create supply side problem. This might be a reason for upswing of oil prices.
Crude production from the Organization of Petroleum Exporting Countries dropped crude production to a two-year low in November, led by losses in Saudi Arabia and Nigeria. The total output from the 12-member group decreased by 245,000 barrels a day to an average of 30.01 million last month compared with 30.25 million in October. This might decline the supply and increase the price.
As, Iran, once OPEC’s second-biggest member, agreed to restrict nuclear work for six months in exchange for an easing of international sanctions the nation, is producing about 1 million barrels a day less than at the start of 2012.
OPEC will probably stick with its current production target as demand for its crude next year will be at a similar level. There is a huge increment in production of oil in U.S which may lead to decrease in import from OPEC.
|
|
|
| Posted by at 3:42:44 PM |
| -------------------------------------------------------------------------------------------------------------- |
|
| Leave a Reply |
 15 Visit(s) |
|
|
|
|
| |
0 Comment(s) |
|
|
Blog Home |
|
 |
|
|
 |
|
|
|
|
|
