Oil prices are booming as crude oil production and stocks in the US have fallen. This, along with rising imports into China, is the first sign of a long time that the oil market is getting tightened. OPEC, on the other hand, continues to largely implement the agreement on abridged mining among the countries in the Union. WTI is trading close to $51.00.
US stocks dropped by 2.7m. barrels to 462.22 mln. while total exports dropped to 1,270m barrels a day, after 1300% growth in the last month.
Production in the country dropped to 9,480m barrel a day, after last week reached a record value of 9.561m.
China's imports rose 12.2% on an annual basis, reducing fears that the country is slowing its development and future oil supplies are in question. Experts are of the opinion that OPEC should continue to cut production to ultimately balance the market. The abstraction program will work until the end of March 2018, and we still do not have an agreement to extend it. If OPEC fails to agree on another extension, the market will resign with low oil prices.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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