Oil prices likely to remain within $40 – $50 for the remainder of the Year

Oil prices likely to remain within $40 – $50 for the remainder of the Year

Welcome to illuminati silver, we tell you
the truth about silver. Today is Sunday 25th September 2016 and we
are looking at the likely trend for oil prices for the remainder of the year.
Before we go into any detail we must add one caveat at the start. In November we have a
Presidential Election in the United States. Should Donald Trump be the victor, then we
believe there will be some considerable market turmoil and gyrations until the markets understand
in which direction Trump’s policies will be heading in relation to International Affairs
and Commerce and the likelihood of Protectionist measures etc. etc. as this could affect any
predictions made here. Overproduction of oil, powered by a desire
to see off a threat from the US shale industry, has sent oil prices into a prolonged slump
and caused economic turmoil for many of Opec’s members. With the oil price still gyrating
around sustained lows, many oil producing countries are in crisis. Opec will gather
for the third time this year on Monday to discuss crude-oil market conditions.
Since topping out in June at just over $50 a barrel for both Brent and WTI crude oil,
prices fell to near $40 a barrel in early August. While that’s well above the year’s
low of sub-$30, prices are far under where they were in late 2014 when Opec embarked
on its goal to seek market share. Comments about a possible production freeze
by Saudi Arabia, and conciliatory talk from Russia, gave oil markets a temporary lift
last month on hopes that perhaps something might be done.
Except for a few countries like Libya and Nigeria, which have reduced production because
of internal strife, many Opec producers are nearing maximum production. So agreeing to
a freeze at current high levels won’t change the fact that Opec is the main reason why
there’s still an oversupply of oil globally. That overproduction also means that bulging
inventories around the world won’t be depleted any time soon. And without an agreement from
non-Opec producers such as Russia, Opec likely won’t budge because it doesn’t want to
lose market share. So, Unless Opec meaningfully cuts production,
oil prices aren’t likely to move out of their current $40 to $50 range this year.
It’s possible that values may stay at the lower end of that level in the short-term
because demand is looking weak. Although US gasoline use was a record this year, Rob Haworth,
senior investment strategist at US Bank Wealth Management, said it still wasn’t enough
to draw down inventories. He added that the “US is about to enter
the “shoulder season” where people don’t drive as much as they do in the summer and
the weather is mild enough to not require heating oil.”
Also, the International Energy Agency reduced its forecast for global oil demand for 2017,
citing economic uncertainty, which may mean the imbalance between supply and demand will
likely continue for some time to come. Attempts by some member-states such as Venezuela,
suffering the worst economic crisis in its history, to persuade Opec to return to its
traditional role of ensuring price stability versus seeking market share were ignored,
despite the policy’s economic toll. All member-states are feeling the impact of lower
oil prices to some degree, with poorer countries like Venezuela affected to a much greater
degree than wealthier countries like Saudi Arabia, which can maintain current low prices
well into 2017. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
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is updated daily can be found at facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.


  1. The OPEC policy doesn't make any sense… what could be the end game. Wait out competitor countries until their economies/ oil production industries collapse?? Why sell 100 barrels at $50 if you can sell 75 barrels at $100… or even $70? Sure they've got dollars stacked to the ceiling, but if they don't care about the stack, why make a stink?

    On a side note, I do wonder what is your opinion of the notion of a "Bradbury" pound. It seems so sensible, explain what the downside might be, if you think there is one.

  2. Oh, I forgot about DuhDuhDonald. I reckon the rest of the world will have quite a long wait, if he gets elected and they are waiting to be sure what policies he might pursue. That clown changes positions more often than he changes his shorts. Call me a naive optimist, but I just can't believe the people in this country will be that stupid. I know HC is not someone who will usher in any sort of improvement. And, I get more paranoid and suspicious every day about almost everything that plays out on the national "stage." But, I endeavor to not give in to cynicism and as much as I loath status quo, if the alternative is DT, I'll have to take it.

  3. Energy  demand is a good indicator of how well or bad the economy is doing, regardless of what Obama or Janet Yellen has to say. These prices won't do much for my income from my oil and gas Limited Partnerships. Good thing I'm diversified!

  4. You hit the nail on the head with that one. Also adding fuel to the peverbial fire is the technological advances in the United States in horizontal drilling and fracking. In which has produce more oil than ever expected.

  5. You have made an important observation in this presentation which respect to gold. Earlier this year, we witnessed a significant drop in the oil price followed by modest recovery to the price range mentioned. Contemporaneously, the gold price moved upward from a previous long downward trend to climb to its current level. Perhaps a negative correlation currently exists between oil and gold prices. Therefore, should oil prices remain in the “doldrums” into the foreseeable future (as suggested) this should bode well for those considering an investment in gold.

  6. It is possible that when the bond bubble bursts cash will move into commodities across the board. We had a tech bubble burst a housing bubble burst the next bubble to burst will be the bond market. Where will investors put their cash ? I believe they will buy commodities.

  7. Are VDE and XLE good buys at this price? I can't really be sure…
    Given that we are seeing an increased push for renewable energy, will we ever see super high oil prices again?

  8. do an update—trump will never get in as president–Obama has told us that and something is going to happen to stop the election whether hillary going out and or martial law event or whatever–that scenario is more likely and that is what we need to know the gold / silver projections

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