Bloomberg listed five most important factors for 2018 oil market

Bloomberg listed five most important factors for 2018 oil market Difference between Brent and WTI crude prices may soar
Energy
December 28, 2017 15:17
Bloomberg listed five most important factors for 2018 oil market

Baku. 28 December. REPORT.AZ/ “Low volatility expected in 2018. This is because OPEC will control the oil market. But due to the speculative investors, the sharp decline in prices is also not an exception”. 

Report informs, Bloomberg agency said on the oil market analysis.

The agency also listed five key factors that will affect oil market in 2018.

According to the founder of the Matilda Capital hedging fund in London Richard Fullarton, "if the US shale oil and Canadian production increase in the first half of the year, OPEC will be forced to restrict production and market. This, in turn, will lead to increase in difference between Brent and WTI crude prices”.

The second factor is the increase in Brent crude price in 2018, as a result of the OPEC's limitation of production.

The third factor is geopolitical risks. In a period when geopolitical risks are rising, $ 100 futures contracts for Brent oil for December 2018 are very popular. Venezuela, Iran and S. Arabia are among the countries that affect the rise in prices in terms of geopolitical risks.

The fourth factor is the decline in volatility to a minimum of 3 years. Co-founder and Chief Oil Analyst at Energy Aspects Amrita Sen said OPEC's decision to manage the active market will continue to maintain volatility at a low level.

The fifth factor is the impact of speculators on prices. The market meets the new year with a record number of stakes on increase of Brent and WTI prices.

Such contracts are much more than those contracts that are designed for lowering, which allows us to believe that in 2018, a collapse caused by the actions of speculators may occur, Bloomberg said.

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