Experts predict a low oil price in September

News

Experts predict a low oil price in September

15.09.2020 News

The price of oil in September will remain low, perhaps even a slight decrease from current levels below $ 40 per barrel. In October, the downward trend is likely to be interrupted and a gradual growth will begin, which will accelerate in November and December, according to TASS experts.

“There will be no serious drop in oil prices in September – it is unlikely to fall closer to $ 35 per barrel. Now comes the review of almost all agencies with draft (oil prices) in September and renewal in October. In November, there will be a further growth trend, “said analyst Andriy Polishchuk. He also added that in the fourth quarter of 2020 the price of oil could rise to $ 47 per barrel.

Mariia Belova, Research Director at VYGON Consulting, sees no reason for further reduction of oil prices in the current conditions. On her opinion, under current conditions the equilibrium price of oil is in the range of $ 40-42 per barrel. Head of analytical department of the AMarkets, Artem Deev, added that by the end of 2020 the average oil price will range from $ 40 to $ 50 a barrel, but it will not exceed this level.

Dmytro Marynchenko, director of the natural resources and raw materials of Fitch agency, is less optimistic: he estimates that the price of oil will be higher than the current one, but on average in 2020 will be about $ 41 per barrel, and in the next will grow to $ 45, but subject to the general trend towards the opening of the world economy will continue.

Why oil fell below $ 40
The recent rise in oil prices was not supported by market conditions, the balance of supply and demand, therefore, the price of the oil fell below $ 40 per barrel.

“Its rise to $ 45 a barrel was not supported by fundamental factors, but rather a consequence of traders. Now, due to the end of the car season and agricultural trials, there is some increase in oil reserves, the beginning of autumn also increases the risk of a second wave of the pandemic, ” – says Belova from VYGON Consulting.

Another factor was the fear of the market before the second wave of restrictive measures through coronavirus. “Some countries and regions are once again stepping up quarantine measures, to curb the spread of the infection, although they remain much milder than in April-June, “said Marynchenko from Fitch.

The price was also negatively affected by Saudi Arabia’s decision to offer discounts on its oil. For example, for Asian buyers, it fell a record – by $ 1.4 per barrel.

Marinchenko noted that OPEC +, even in worst-case scenario, developments in the market will continue to manage the balance of supply and demand and, if necessary, make adjustments to the parameters of the current agreement to reduce production. “At the moment the sharp fall in prices is unlikely but possible that at some time they will remain in the corridor of $ 30-40,” – he said.

“Clearly, the current movement has been affected by data of increasing oil reserves in the US and a general concern, that the incidence of coronavirus has begun to rise again in the world. But the price has long remained at $ 45 per barrel, so it is difficult for it to go up immediately, it needs some start-up, ” – summed up the analyst of “Finama” Alexey Kalachev.

Other articles

  • Experts estimated the damage to the global economy due to coronavirus
    News

    Experts estimated the damage to the global economy due to coronavirus

    Experts predict the collapse of the economy if states do not continue the policy of fiscal support for business. Information was reported by the American publication of Bloomberg. The main problem today – is a continuation of the spread of the virus that outbreaks around the world. Even when the vaccine is developed, its use […]

  • Saudi Aramco has stopped investing in a petrochemical complex in China
    News

    Saudi Aramco has stopped investing in a petrochemical complex in China

    According to Bloomberg sources, state oil company Saudi Aramco of Saudi Arabia has stopped investing in a project of building oil refinery and petrochemical complex in China, estimated at $ 10 billion. The decision to terminate the investment was made after talks with Chinese partners and it is associated with high uncertainty about the prospects […]

  • In the United States, the number of Americans who have applied for unemployment benefits is growing again
    News

    In the United States, the number of Americans who have applied for unemployment benefits is growing again

    The U.S. Department of Labor’s weekly report on Thursday showed that the number of initial applications for unemployment benefits in the country rose to 1.106 million in the week ended August 15, which is worse than the forecast of economists at 925 thousand and worse than the previous week, when the figure of 971 thousand […]

  • Japan’s GDP fell to a high record
    News

    Japan’s GDP fell to a high record

    In the second quarter of 2020, Japan’s economy shrank by 7.8% over the previous three months. Such preliminary official data was published by Trading Economics. It is noted that the fall of GDP was recorded for the third consecutive quarter and became a record, due to the negative impact of the COVID-19 coronavirus pandemic. At […]

  • Travel concern TUI expects another 1.2 billion euros of “coronavirus” state aid
    News

    Travel concern TUI expects another 1.2 billion euros of “coronavirus” state aid

    TUI will receive another 1.2 billion euros in state aid in connection with the effects of the coronavirus pandemic, the press service of the travel concern said. “The € 1.2 billion stabilization package strengthens the group’s position, providing sufficient liquidity in an unstable market environment. This applies to both the tourist season of the winter […]

  • Shares of cruise company Royal Caribbean rose on 10% against of the background of optimistic forecasts
    News

    Shares of cruise company Royal Caribbean rose on 10% against of the background of optimistic forecasts

    Shares of cruise company Royal Caribbean, which decreased by 57% since the beginning of the year, rose for the last quarter and closed with an increase of 10% to $ 57.31 per share on Monday after the publication of the financial results of the second quarter. Investor`s optimism is based on Royal Caribbean management’s statements […]

  • Microsoft has announced to acquire TikTok in the United States by September 15
    News

    Microsoft has announced to acquire TikTok in the United States by September 15

    Microsoft announced the plan: to buy the fashionable social application TikTok, that owned by the Chinese company Bytedance Ltd, and confirms the long-standing efforts of the technology giant to occupy a niche in the digital advertising market, along with Facebook and Google. It is known that Microsoft intends to acquire TikTok’s business in the United […]

Read also

Experts predict a low oil price in September
News

Delta Air Lines intends to lay off about two thousand pilots

During the pandemic, Delta lost three-quarters of its revenue over the same period last year. The company can avoid layoffs if management and the trade unions will be able to conclude an agreement to cut costs, and the White House will continue to provide subsidies to airlines. Currently, the airline employs 11,200 pilots. Back in […]

Next
Experts predict a low oil price in September
News

7 Founders Share What Their Worst Boss Taught Them

Online resource Entrepreneur has published interesting and instructive stories from the lives of American and Canadian founders of the business in which they share the lessons they got from the worse mentors in their life Be  a mentor  Name: Melissa Ben-Ishay, Company: Baked By Melissa Lesson: The importance of open communication. When I think of the […]

Next
Experts predict a low oil price in September
News

Japan’s Honda will invest a considerable sum of money in its production in Canada

The Government of Canada and, directly, the municipality of the largest city Toronto will help to improve automotive industry Honda. This information is provided by investment portal InVenture Ukraine. It is known that the forward Japanese manufacturer of motorcycles and automobiles will invest in their businesses in the central Canadian provinces – Ontario (Mr. Elliston) […]

Next
Experts predict a low oil price in September
News

Avellana Gold Ltd. purchases Zakharchenko’s Company

Avellana Gold Ltd. has become the owner of PJSC Carpathian metallic mineral company. Interfax-Ukraine has informed about it. According to information, placed on the website, the foreign holding also invests about 400 million dollars in the development of an industrial complex. The agreement on investment attraction was signed on November 16,2016. Other details of the […]

Next
Experts predict a low oil price in September
News

JPMorgan Reports Quarterly Revenue Growth Because Of The Investment Unit Strength

JPMorgan shares increased because of the announcement of financial results for the 2nd quarter ended on June 30. Since the beginning of the year, JPMorgan shares have lost almost 30% because the global COVID-19 pandemic has hit the global economy, and the US Federal Reserve has cut rates to zero greatly reducing the profitability of […]

Next
Experts predict a low oil price in September
News

AMCU fined the plant “Ukrproduct Group” of 790.3 thousand UAH for adding vegetable fats in the butter

Vegetable fats have been repeatedly found in butter produced in the SE “Starokonstantinovsky dairy factory”. This is confirmed by the state of research in 2012-2014.  The Antimonopoly Committee has fined SE  “Starokonstantinovsky Dairy Plant”, which belongs to the largest Ukrainian manufacturers, the Ukrproduct Group company. The fine amounts to 790.3 thousand UAH. This was reported […]

Next
Experts predict a low oil price in September
News

Events under the Verkhovna Rada: “Lawyers – are practically the most intellectual … well, the fool always takes by force …”

A lawyer — is a peaceable profession which is designed to protect. Both violations of the rights of lawyers and depreciation of institute of legal profession completely level the rights of the citizen of Ukraine. Under such slogan the peaceful protest action of lawyers under walls of the Verkhovna Rada took place, devoted to fighting […]

Next
Experts predict a low oil price in September
News

Digital Future will become a leading investor in the Ukrainian startup Softcube

The Digital Future Investment Company invests $ 200,000 in the Softcube personalization service. In this round also participated private investor Alexei Kuznetsov, and the total size of the deal was $ 400 000. There is another investor in the transaction, he is going to announce its participation later, because now he is at the stage […]

Next
Experts predict a low oil price in September
News

The manufacturer of “Oleyna” opens a plant in Mykolaiv region

The “Bunge Ukraine” company launches a new oil-extraction plant in Mykolaiv region. The estimated capacity  is 2400 t / day. According to the “APK-Inform”,  as referred to the sources of  the company,  the “Bunge Ukraine” company plans to put into operation the oil-extraction plant in Mykolaiv region in the coming months. Currently, the pre-commissioning activities […]

Next
Experts predict a low oil price in September
News

Court admits illegality of Delta Bank assets transfer

On November 9, 2016, the Economic court of Kiev made the decision about Bank Delta illegal assets transfers . It bears remaining, in March the National Bank of Ukraine has published information that Delta Bank is the bankrupt. The agreement of an Oschadbank mortgage signed on more than 400 million hryvnias 6 years ago. In […]

Next
Experts predict a low oil price in September
News

Ukrainian restaurateurs sue for Oliva trademark

Ukrainian restaurateurs cannot share the trademark Oliva. The former partners, Dmitry Plyatsuk the owner of marks Viva Oliva and Yuriy Kolesnik he owner of Oliva served counterclaims to revoke the trademark of the competitor. January, 20 Solomenskiy District Court of Kiev will consider the claim of Viva Oliva to the Ukrainian Institute of Intellectual Property […]

Next
Experts predict a low oil price in September
News

State of Amazon head Jeff Bezos has reached $ 200 billion

The position of the richest man in the world, Amazon CEO Jeff Bezos reached $ 199.7 billion, which is a record for a businessman. This was reported on Wednesday by Forbes magazine. The publication noted that during the trading of Amazon shares on Tuesday, the state of Bezos even exceeded the mark of $ 200 […]

Next
Experts predict a low oil price in September
News

Ukraine had remained in the top-10 steel producers

In May Ukraine produced 2.3 million tons of the steel. This figure is to 5.7% higher than was in the same period in 2015. This is confirmed by the monthly data of the international organization World Steel Association. It is a non-profit organisation with its headquarters in Brussels, Belgium and a second office in Beijing, China, […]

Next
Experts predict a low oil price in September
News

Svarog West Group directs $ 3.5 million for innovative projects

“Svarog West Group” will direct $ 3.5 million for innovative projects in 2016. That was said by the chairman of the Corporation Andrey Gordiychuk in an interview to the AgroPolit.com. According to him, the investment “appetite” of the company significantly decreased in 2016. “But this does not apply to investments in research and development: ours are IT-solutions, […]

Next
Experts predict a low oil price in September
News

Investors lodged a class action complaint against Facebook

Recently, a federal court  of the USA  has received several class lawsuits where the world’s most popular social networking site Facebook is a defendant. The plaintiffs in the case are large investors of Facebook. The global network Facebook is accused by investors that it  has not notified them of the risks and concerns that relate […]

Next
Experts predict a low oil price in September
Analytics

Walnut Garden – a Long-term Investment

Gardening is a purely European business by mentality as it means long-term investments and a completely transparent process. Walnut is a financial pearl of this industry. A walnut garden of only 1 hectare yields more than 1.2 million UAH per year. A walnut garden is an investment in the future and long-term well-being, as one […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com