Dwayne Buzzell Blog | Oil edges higher as OPEC files nine-month extension | Talkmarkets

Dwayne Buzzell

Forex Trader
Member's Links: Forex Trader

Between 2003 and 2007 I was studying Economy at Berkeley University.

Since 2014 I've been investing in the forex market. It takes me about 2-4 hours daily. I have a lot of experience and I want to share my knowledge.

Oil edges higher as OPEC files nine-month extension

Date: Wednesday, May 31, 2017 11:43 AM EDT

The long waiting OPEC meeting has finally come to an end and the leading oil investors are feeling a great level of comfort due to the extension of oil production cap program. Both OPEC and non-OPEC members have appreciated this decision and the aggressive Aussie traders are cautiously waiting for the price action confirmation signal to enter long in the oil market. The price of oil was drastically falling in the global market due to the oversupply problem and most of the leading oil investors were worrying due to extensive selling pressure in the market. But things settled down to a great extend after OPEC declared cap in the production oil to bring stability in the energy field. After this drastic action, the professional Aussie traders made a decent profit by entering long in the oil market. Such a drastic action from OPEC has not been seen since 2008 and leading economist are considered it as the perfect step to bring stability in the energy field.

Sentiment of the leading oil producing countries

Most of the leading oil producing countries in the global economy have appreciated OPEC decision to bring stability in the energy field. Countries like Saudi Arabia and Kuwait has already limited their current production rate and they have told that they will cut their oil production more than they promised in order to stabilize the energy field. However, Iraq is still producing on a large scale and the leading investors are conscious about this factors as this might fuel up the oversupply problem in the global market.

In the past, the active number of oil rigs in U.S economy was only 12 but over the span of 12 months, they have more than 728 fully functional rigs. An active production from such a large number active oil rigs will wash away the effort of OPEC meeting. But the U.S government has already stated that they will not create oversupply problem rather they will also try to stabilize the energy field in the global market. The professional traders in the options trading industry are now currently looking for long oil with bullish price action signal to ride the possible long bullish rally in the price of oil.

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