WTI with a new momentum of + 2.50% - S. Arabia and Russia will participate in a new agreement

WTI futures rose 2.52% after Saudi Arabian Energy Minister said OPEC had to declare an extension to the 9-month abridged mining program from March 2018. until the end of 2018. The summit of OPEC members and major producer countries outside the organization will take place on 30 November in Vienna.

On the other hand, exports of US oil rose again, reaching levels of 1.129ml. barrels per day. Enhanced US exports and good prospects for the oil industry in the country remain the main obstacle to the growth of black gold. From the data published today at 20:00 hours on the number of platforms in the US it is clear that the number of working platforms has risen to 915 from 907 last week. This will not have a direct impact on the price of oil as the increase is entirely due to new gas fields, not petroleum.

Here are the details:
- Net change in working platforms: 915 vs 907 last week
- Gas fields: 177 vs 169 last week
- Oil fields: 738 vs 738 last week

Today, oil is backed by North Korea's refusal to negotiate with Washington on its nuclear program. From the published satellite images earlier today, it became clear that S. Korea is working on a submarine capable of carrying a nuclear weapon. Enhanced geopolitical tensions are leading to oil growth, as a possible conflict will consume a large amount of oil resources worldwide.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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