Prices for Brent are close to $ 84 per barrel, as investors no longer rely on the reduction by OPEC.
Yesterday, Brent futures fell from $ 88.14 to $85 per barrel - the lowest level since December 2010. WTI futures fell by $ 0.73 to $ 85.01 per barrel. Brent prices are 20 percent below the peak reached in June of this year.
Saudi Arabia says oil market participants that has no objection to maintenance of low world prices for a long time and, apparently, is not going to cut production. OPEC will consider a quota for oil of 30 million barrels per day at a meeting on November 27th.
In the market say that Saudi Arabia is unlikely to reduce production at its meeting in November, and it seems to affect the market. Most likely, prices will have a chance to recover in November and December.
Saudi Arabia does not seek to hasten the fall of prices, and is just waiting for the market to reach its lowest point and the time OPEC countries will take any action. Saudi Arabia makes it clear that it would not take the responsibility for managing all of the oil market.
China in September has increased oil imports by 7.4 percent, exceeding forecasts, but analysts suggest that this may be largely due to the completion of the strategic reserves. At the same time the United States has excess supply, which also contributes to lower prices.
Investors see an opportunity to jump in prices at the end of the year, given the extremely pessimistic mood and market positioning. Even if OPEC does not take significant action until the end of the year, the fundamentals have changed and should eventually raise prices.
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GBPUSD – October 10th 2014
USDCHF – October 14th 2014