• Optimism dominates oil markets .. unexpected heights with the notable activity of hedge funds


    Despite the huge challenges and difficulties in the oil market, there are positive optimistic looms in the sector, thanks to the activity of hedge funds, as it seems to be betting that oil has ​​an area to rise, according to specialists and analysts.​

    This comes at a time when crude oil prices tended to rise due to optimism about the announcement of progress in the trade negotiations between the United States and China, which eases the market concerns of recession fears and global slowdown.

    The market is eyeing influential decisions by OPEC and non-OPEC producers at their meeting in December to review a production cut deal amid mounting expectations that production cuts may deepen to absorb a large supply glut next year.​

    ​Oil specialists and analysts told to the Al-Iqtisadiah, that the trade war imposes its dominance on the crude oil markets and became the loudest and most influential voice despite other pressures of geopolitical factors, especially with regard to attacks on oil facilities such as the September 14 incident, which was It has wide repercussions on the market without the speed of containing it from the Saudi side.​

    John Hull, director of the international energy company Alpha Energy, said that despite the huge challenges and difficulties in the market, there are positive prospects looming in the sector, this is evident with the follow-up hedge funds activity as it seems to be betting that oil has room to rise, due this is largely due to the positive movement regarding the expectation of a significant development in the US-China trade negotiations. "​

    He added that "The gradual easing of additional tariffs between the United States and China will contribute significantly to easing economic tensions next year after trade disputes have caused widespread damage to the global economy in recent months," 

    ​For her part, Nila Hengstler, Director of the Department of Africa and the Middle East in the Austrian Federal Chamber, that the geopolitical risks in the Middle East escalate with the continued crisis of the Iranian file, especially in light of the recent violations on uranium enrichment and breach of the 2015 agreement, which exited the United States, fueling fears special supplies with the imposition of US sanctions tough on Iran.

    She noted that the Middle East region a vital region and contain more than 60 per cent of global reserves of crude oil, is likely to tensions remain in the high region and increase the supply risk which imposes further burdens on producers cooperation plans that are reviewed next month's special cut agreement production to reach the best formulas that enhance stability and balance in the oil market.​

    For his part, Markus Krug said a senior analyst company "E-control" for the research of oil and gas, "The level of stocks of the main factors important affecting the movements of oil prices of crude, a core objective of the plan producers to balance the market through the treatment of surplus stocks and return it to the average level in five years. "​

    In turn, David said Desm analyst at the International "South Court", "Iran's insistence that the US rejected the conditions for the lifting of sanctions predict the escalation of the conflict in the region, especially with what was spotted Energy Agency of Atomic Iranian breaches of safeguards to prevent nuclear proliferation."
    He explained that the US sanctions may be tightened in the coming period and longer than exports of crude oil and condensate to include exports of other energy resources, according to official US sources.​
    He pointed out that the sanctions are likely to further tighten in light of the insistence of each party not to make concessions, which will lead to the continued sharp decline in Iranian production and shrink exports, which serves the plans of the "OPEC +" alliance to reduce oil supply, pointing out that the sanctions imposed by the United States According to reliable international estimates, some 2 million barrels of Iranian crude and condensate sales have been deducted from the market, although some analysts believe that some quantities will continue to be exported illegally.​
    On oil prices, oil prices rose yesterday, recovering from early losses on hopes that US President Donald Trump may signal progress in trade talks with China. According to "Reuters", by at 06:44 GMT, futures contracts for Brent crude high 31 cents, or 0.5 percent, to $ 62.49 a barrel, after she had got to $ 61.90 a barrel earlier yesterday. US West Texas Intermediate (WTI) crude rose 23 cents, or 0.4 percent, to $ 57.09 a barrel, after falling to $ 56.55 a barrel.​
    Trump said on Saturday, "The talks with China is moving very well, but the United States will not enter into an agreement only if optimal for Washington." He also said, "that there were wrong reports about the intention of the United States to raise customs duties."
    The daily report of the Organization of Petroleum Exporting Countries "OPEC" said yesterday, "The basket price, which includes averages 14, prices of crude produced by Member States of the Organization achieved the first rise after several previous declines, and that the basket is almost stabilized at near the level of last week, the same as that recorded the 62 dollars per barrel. "​

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