#ForexChief #BlackGold #forexnews #G7 #Biden #OilMarket #worldnews ⠀
🛢️ Black «gold» feeds the rich: what to expect from the oil market?⠀
💰 The oil giants are taking wild profits. This encourages inflation, raises the risk of a recession and pushes governments towards the idea of an extra tax on excess profits. The appeals of political leaders to reduce consumer prices for energy resources and increase production have not yet been heard by big businesses.
⠀
The commodity market is under pressure from two factors: a shortage of production capacity and the prospect of destroying demand due to a recession. The first factor pushes the price above the psychological level of $100 per barrel, and the second threatens a sharp decline.
⠀
After Biden's visit, Saudi Arabia did not announce any adjustment to its policy: the leaders failed to agree on an increase in production. Now the reserve production capacities of the Saudis remain the only hope of importers for relatively rapid cooling of the oil market. According to the IEA, the Kingdom maintains stable production at the level of 11 mln b/d and will be able to bring another 1.2 mln b/d to the market within 3 months. But no analyst is ready to predict when and how these reserves will be used.
⠀
Saudi Arabia and Iraq are increasing their oil supplies: for three weeks now, more than 1 mln b/d of crude has been delivered to Europe via the SuMed trans-Egyptian pipeline; Iraq prefers supplies through the Suez Canal and the Red Sea. The idea of «marginal prices» for Russian oil dominates the media headlines, G7 officials are actively commenting on this topic, but real solutions are still far away.
⠀
Let's try to think in sync with big capital. We believe that as long as the problem of creating winter energy reserves in Europe persists, it makes no sense for oil corporations to reduce the global price. So we sell carefully and carefully control the fundamental background.
⠀
Profits to y’all!