The managed quality in key Brent unrefined after the current shutdown of the North Sea Forties pipeline has urged Asian end-clients to change from the costly sweet rough complex in December, with Indonesia wanting to update its refinery frameworks one year from now to deal with high sulfur raw petroleum.
Goldman Sachs: OPEC arrangement to adjust showcase, yet another overabundance coming in 2018.
Goldman Sachs says that the 9 month expansion ought to standardize oil inventories, yet hazards linger for the second 50% of one year from now.
The declining oil price index turned to bullish as the Asian stock markets stabilized following heavy losses in the previous session, but weak oil market fundamentals with production levels persistently above global demand kept a lid on gains. It seems the oil products and petrochemicals and polymers will follow the change in prices as the producers suffered a lot during the market shrinking period.
Bitumen market conditions and prices remained almost unchanged since Oil prices retreated this week, retracing most of the gains achieved last week, putting crude nearly back where it started before the latest rally. WTI dropped to $46 per barrel on October 15 and Brent fell under $49. The EIA reported bearish weekly figures, which depressed crude markets. Refinery inputs dropped and crude inventories shot up by 7.6 million barrels, the most in six months. The jump in storage levels renewed fears of oversupply.
The global market especially the western companies are waiting to see the real impacts and effects of Iran Nuclear talks. "the removal of banking and other trade related sanctions will encourage the western companies to involve in Iran's market more serious than ever; as the global economy needs Iran's market contribution to overcome the remains of the economic crisis from last decade" says Emad Honarparvar, Trader at Iran Mercantile Exchange Market.
Oil prices have stabilized somewhat around the $60 per barrel mark, and over the past few weeks oil has shown less volatility than what we have grown used to in the preceding six or seven months. Emad Honarparvar, CEO of Modiran Trading says: "Iran and Saudi Arabia continue to contradict in benefits from new oil prices, and this is not only about economics."