Oil prices have been rising steeply for several weeks. The prices of the most important oil companies have also risen. How can investors profit?
The OPEC+ oil cartel’s member countries surprised the markets with an unexpected production cut announcement early this week, causing a surge in crude oil prices. The cuts were a “precautionary measure aimed at supporting the stability of the oil market,” OPEC+ said.
Last Wednesday, the countries of the OPEC+ oil alliance decided on a comprehensive reduction in oil production. As early as November, 2 million barrels less per day will be produced. Many countries fear a rise in oil prices.
Crude oil prices continued to soar in the past week. The background to the oil price increases lies in the rising demand for oil combined with the ongoing economic recovery and fears of tight supply. The price surge in recent days was triggered by a drop in oil reserves reported by the US government on Wednesday.
The rise in oil and energy prices is fueling concerns about a burgeoning inflation. Behind the failure of the latest OPEC negotiations is also a political competition for influence and power in the Gulf region.
Hopes for an economic recovery, but also the latest inflation fears, have recently fuelled the price rally on the commodity markets, with prices for crude oil and industrial metals continuing to soar. Several metal prices recently rose to multi-year highs.
The eyes of the international business world are currently fixed on Vienna. At the OPEC headquarters in downtown Vienna, the oil cartel’s member states and its allies are currently haggling over production volumes, and thus the further development of oil prices, via video conference.
What has occurred since last Friday ? This Easter weekend was quite different compared to other Easter weekends of the past. Even if our countries will be on the forefront to loosen the lock-down over the next months not much could be felt from any resurrection yet. At least the OPEC-countries and their allies including […]
The distortions on the financial market continue, and the prices of risky asset classes such as equities and corporate bonds with low credit quality are falling. Market prices have increasingly come to reflect a global recession.
Oil prices came under pressure at the beginning of the year. The consequences of the coronavirus in China were cited as the main reason for the fall in prices.
How does the struggle for a stable oil price continue?