FTSE flounders, pound falls on trade and Brexit fears

WTI Crude Oil

WTI Crude Oil

United States shale producers can step up to meet any supply deficit, but Roberts and Phil Flynn, senior energy analyst at the Price Futures Group, said it takes time for them to increase output because of the nature of shale mining. Iran faces renewed US sanctions that will impact its oil industry and Iraq has production constraints.

Oil prices rose on Monday in volatile trade as this week's OPEC meeting raised the specter of production increases and as investors assessed the impact of a trade dispute between the United States and China.

"If the Kingdom of Saudi Arabia and Russian Federation want to increase production, this requires unanimity". The rise in Oil price is due to the production cut in past few years by OPEC. Indications from OPEC members and other large producers on the scale of potential production increases are likely to drive the market, he said. And some Opec members want prices to go higher to help them meet their country's budgets.

However, the strong dollar seems to have disturbed the assumption as the likely lower demand on account of higher interest rates would mean that oil producing countries would now be struggling to sell their goods in a tighter market. These numbers suggest that U.S. and handful of other non-OPEC countries will more than meet global demand. Saudi Arabia's clout within the OPEC will be put to test over the weekend. Shortly after, since the US shale production wasn't able to offset the production cuts that OPEC and non-OPEC nations made, oil prices rose significantly through 2017 up to 2018 and that made the Trump administration anxious about the effect of higher prices on Trump's political stance.

The willingness of the Saudis to do more than ensure the market remains balanced may be disciplined by their own finances - the production limits and consequent higher prices have stemmed the haemorrhaging of their own public finances that occurred when oil prices plunged. "The whole world has to stand against these arrogant attitudes - and will".

The incredible reaction in Walkabout Sheffield after England's last-minute victor against Tunisia
All in good spirits no doubt but there's nothing like the World Cup for fanning the flames even if we're not involved. The England captain popped up in the dying stages of the game to score, securing all three points against Tunisia.

Meanwhile, Russia plans to propose the OPEC/non-OPEC allies next week that they reverse the group's production to the October 2016 levels - the baseline for the cuts of most pact participants when they had pumped as much oil as they could to blunt the cuts' impact later is putting pressure on crude oil prices.

A cut in Chinese purchases of USA oil may also benefit Iran's sales, which Washington is trying to curb with new sanctions it announced in May. "What if we have another hurricane", he said, referring to Hurricane Harvey, which took out refinery capacity in Houston and sent gasoline prices soaring for a while last fall.

"Opec is fractured or fracturing", McKenna said, as Iran, Venezuela, and Iraq "seek to veto the production increase".

"In this meeting and the 7th OPEC International Seminar, a unique assembly of Ministers, heads of intergovernmental organisations, chief executives of national and international oil companies, industry leaders, academics, energy experts and media, we will review the noteworthy progress that we are making", he said. We expect prices to be in broad range of $63 and $66 on the WTI, with heightened volatility ahead of the event.

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