What's Affecting Oil Prices This Week (September 24, 2018)?
In the week since the last What’s Affecting Oil Prices, Brent rose only $0.31/bbl last week to average $78.80/bbl as WTI rose $1.34/bbl to average $70.29/bbl. Counter seasonal draws supported WTI and ongoing concerns around global supply are supporting Brent.
For the week ahead, we expect Brent to maintain its strength averaging $78.50/bbl after the OPEC/non-OPEC ministerial monitoring committee meeting ended with no formal agreement to raise production and without a plan to achieve the production levels agreed to at the June OPEC meeting.
Geopolitics will be a neutral factor in the week ahead.
The dollar will be a negative factor in the week ahead as fears of emerging market weakness stemming from a strong dollar impact demand expectations.
Trader Sentiment: Positive
Trader sentiment will be a positive factor in the week ahead as increasing Brent net longs point to ongoing concerns around supply.
Supply will be a positive factor in the week ahead, especially after the OPEC / non-OPEC meeting ended with no formal plan to raise production.
Demand will be a neutral factor in the week ahead as concerns grow about future demand in light of President Trump’s latest tariffs.
Refining will be a neutral factor in the week ahead, as product stocks enter the winter season elevated in both Europe and North America.
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