CRUDE OIL: Russia, Iran & Venezuela Wildcards In Oil Prices A jump in Eurozone and UK manufacturing PMI gave speculators a reason to push up oil prices in Asia. The commodity gained 15 points to 46.29 which this writer believes in a pump and dump move by big traders. There is no earthly reason for oil prices to climb as global stocks continue to fill storage containers and cargo ships and reserve tanks around the globe.
New estimates show that it will take at least 2 years to make a dent in the current storage. As global growth continues to decline the demand for oil should lessen although industry reports show that there will be an uptick in consumption in 2016. Production continues to increase regardless of the reduction in future projects by US shale producers and the drop in rig cout
Saudi’s refuse to cut production and will dominate the December 4th OPEC meeting. Russia remains an unknown quantity as Putin needs to see oil prices climb to fill the Russian coffers and Venezuela suffers huge economic hardships.