Breaking News
0

4 Key Oil-Related Events That Investors Need To Know

By Ellen WaldCommoditiesAug 08, 2018 06:52
uk.investing.com/analysis/4-key-oilrelated-events-that-investors-need-to-know-200202975
4 Key Oil-Related Events That Investors Need To Know
By Ellen Wald   |  Aug 08, 2018 06:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

1) On August 20, the OPEC and non-OPEC Joint Ministerial Monitoring Committee (JMMC) will hold its second teleconference meeting. The last meeting was held on July 18, at which OPEC producers reported that, due to increased oil output, their overall compliance level had fallen to 121%. Whereas the JMMC used to evaluate compliance on a country-by-country basis, this will no longer be the case. It is widely expected, though not discussed outright, that some countries will produce more than envisaged by their individual production quotas, in order to increase the amount of oil on the market. Iran has called out Saudi Arabia and Russia for over-production already, but these admonishments have been mostly ignored. Compliance levels are expected to show further drops, but perhaps less than expected as Saudi Arabia reported that it produced less crude oil in July than it did in June.

2) On September 15, gasoline outlets in the United States will start selling winter blend gasoline. In preparation for this, refineries generally start producing winter blend in August. Refineries typically go offline for maintenance as they complete the switchover, which somewhat lowers oil demand. However, impact on demand should not be shocking, because the switchovers are generally staggered. Winter blend gasoline is cheaper to produce because it contains more butane and fewer blended elements designed to reduce air pollution. Typically, consumers see a drop in gasoline prices after the switchover.

3) On or after November 5, the United States will impose sanctions on anyone or any institution that has “materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the National Iranian Oil Company (NIOC).” The first round of sanctions are going into effect this week and include sanctions on anyone or any institution that helps Iran purchase US dollars or gold. There are also sanctions on those who sell, “supply, or transfer to Iran significant goods or services used in connection with the automotive sector of Iran.”

Oil refineries that are still purchasing Iranian oil will be watching to see how the US implements this week’s round of sanctions. They may alter future purchases of Iranian crude oil if they see that the US is serious about these sanctions. Right now, analysts estimate that between 600,000 and 1 million bpd of Iranian oil may come off the market as a result of sanctions. However, that number should be expected to rise if the US implements financial and automotive sanctions strictly.

4) OPEC plans to hold its next regular meeting on December 3, in Vienna. It will be followed by a non-OPEC Ministerial Meeting, at which analysts are hoping the group will reveal details of the new “super-OPEC” institution. The question of whether Russia will maintain its cooperation with OPEC is of great importance. Saudi Arabia has gone to great lengths to keep Russia involved in both supply cuts and increases over the past year and a half, but there remains a possibility that Russia will decide to leave the group and pursue its own agenda. Russia’s participation and cooperation depends entirely on whether that cooperation is seen as furthering the country’s own interest. Will the country still see cooperation with OPEC in its interest if oil prices increase significantly by December? If not, it might very well decide not to join a “super-OPEC” institution. Or it may press for the institution to take the shape of a symbolic group for furthering discussion rather than for setting out measures.

4 Key Oil-Related Events That Investors Need To Know
 

Related Articles

4 Key Oil-Related Events That Investors Need To Know

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email