Oil drops as OPEC joins Russia, increasing output head of production cuts.
"We can see uncertainty in Oil will remain and stretch into 2017” commented Edward Fraser, Head of Corporate Trading at Manulife Norinchukin Bank Holdings.
(PRWEB) December 06, 2016
Manulife Norinchukin Bank Holdings have commented that last week’s decision made by OPEC helped prices rally by about 15 percent has retracted due to data giving clear indications of rising production from its members and Russia.
“We can clearly see the markets have been left exposed after the increase in production, with prices dipping its just profit taking until it reaches a support level. We still remain sceptical that this weeks meeting that non-OPEC producer’s will agree on reductions amid further output from OPEC.” commented Edward Fraser, Head of Corporate Trading at Manulife Norinchukin Bank Holdings.
According to a recent survey OPEC’s oil output has broke through another record high earlier in November, 34.20 million barrels per day from October at 33.80 bpd.
Russia have also noted that the average oil production in November (11.21 million bpd) was its highest in over 30 years, this translates that combined with OPEC they alone produce half of the global oil demand sitting at just shy of 96 million bpd.
OPEC has stated that all of its major oil producers outside of the group would cut over half a million barrels per day of production on top of its own 1.2million bpd reduction forecast. The final terms are to be agreed on the 10th of November in Vienna.
Market Commentary has been providing by Manulife Norinchukin Bank Holdings.
Contact:
Manulife Norinchukin Bank Holdings | info(at)mnbholdings(dot)com | http://www.mnbholdings.com
Media Contact: Manulife Norinchukin Bank Holdings (MNBH) | press(at)mnbholdings(dot)com
SOURCE Manulife Norinchukin Bank Holdings (MNBH).