During past few months, Oil prices are struggling hard to get back to their previous positions which use to be all time high. After the development of Shale gas by the US, OPEC countries are struggling hard to manage the demand supply and price equilibrium of crude oil. Speculations about the further downfall of the oil prices are made by some of the renowned analysts. Citi Group recently had joined hands with Goldman Sachs Group Inc. Considering the fact to believe in commodity market compared to the oil market that is currently suffering a huge setback.
OPEC countries are in the constant dilemma due to the continuous downfall in the oil prices and had cut down the production and supply to maintain a balance. The deal that was signed between the producers of oil was expected to sustain only for six to nine months but has been extended and expected to be continued until the end of this year. Investors are predicting a bullish market for oil in near future. With the continuation of the deal among the OPEC and Non-OPEC countries producing crude oil, predictions are made about the price to move beyond $60 per barrel.
Reducing the supply of crude oil in the market also had an adverse effect on the traders and middlemen. The production cut agreement forced traders to move the oil to offshore sites because it would be costly for them to store oil at the sea, thereby affecting their incentives. On the other hand, the US has been very motivated about the increased production and usage of the shale gas which is replacing the traditional crude oil in the current scenario with a record-breaking production in its first quarter of the year.
The downfall in the oil market has adversely affected the commodity market as well. But Citi bank and Goldman Sachs predicts a better future for commodity market in the second quarter. Citi bank also suggested that the first quarter might have been very critical for the commodity market due to various external factoring affecting the prices but still, the commodity market is expected to see a better sell-off in the second quarter. It’s seen that the commodity market grew by $45 billion during the month of January and February but saw a setback in the month of March by $35 billion.
According to the analyst, commodities like iron ore, copper and steel would be the major contributors to improve the current struggling conditions of the commodity market and take it to profitable place by the end of this year.
Daniel is acting editor of Talk Herald with over two years of experience in the field of online news under his belt. Daniel has worked with multiple media houses and is currently leading a team of journalists, sub-editors, and writers through his entrepreneurial endeavors.
Your email address will not be published. Required fields are marked *
Notify me of follow-up comments by email.
Notify me of new posts by email.
United StatesCanadaMexicoUnited Kingdom-----AfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntigua and BarbudaArgentinaArmeniaArmeniaArubaAustraliaAustriaAzerbaijanAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBonaireBosnia and HerzegovinaBotswanaBouvet Island (Bouvetoya)BrazilBritish Indian Ocean Territory (Chagos Archipelago)British Virgin IslandsBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos (Keeling) IslandsColombiaComorosCongoCongoCook IslandsCosta RicaCote d'IvoireCroatiaCubaCuraçaoCyprusCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFalkland Islands (Malvinas)Faroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard Island and McDonald IslandsHoly See (Vatican City State)HondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKazakhstanKenyaKiribatiKoreaKoreaKuwaitKyrgyz RepublicLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLiechtensteinLithuaniaLuxembourgMacaoMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNetherlands AntillesNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorthern Mariana IslandsNorwayOmanPakistanPalauPalestinian TerritoryPanamaPapua New GuineaParaguayPeruPhilippinesPitcairn IslandsPolandPortugalPuerto RicoQatarReunionRomaniaRussian FederationRwandaSaint BarthelemySaint HelenaSaint Kitts and NevisSaint LuciaSaint MartinSaint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint Maarten (Netherlands)Slovakia (Slovak Republic)SloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia & S. Sandwich IslandsSpainSri LankaSudanSurinameSvalbard & Jan Mayen IslandsSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkeyTurkmenistanTurks and Caicos IslandsTuvaluU.S. Virgin IslandsU.S. Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUruguayUzbekistanVanuatuVenezuelaVietnamWallis and FutunaWestern SaharaYemenZambiaZimbabwe
Global Glycine Market Growth by 2023: Showa Denko KK, Ajinomoto, Chattem Chemicals and GEO Specialty Chemicals
Global Glucagon Like Peptide-1 Agonists Market Growth(CAGR) by 2022: AstraZeneca, Eli Lily, Sanofi and GSK
Global Patient Temperature Management Devices Market Insights by 2023: Stryker, Smiths Medical, C. R. Bard and Cincinnati Sub-Zero
Global Heart Lung Machine Market Size, Share 2018: MAQUET, Medtronic, Terumo and Braile Biomedica
Global Tetrabromobisphenol-A Market Size, Share 2018: Shandong Brother Sci.&Tech, Jordan Bromine, ICL-IP and Shandong Moris
Global Mannequins Market Growth by 2023: Retailment, Window Mannequins, Pentherformes Group and Hans Boodt
Global Consumer Floriculture Market Growth Outlook by 2023: Oserian, Washington Bulb, Selecta One and Karuturi
Global PV Solar Energy Charge Controller Market Insights by 2023: Victron Energy, OutBack Power, Renogy, Remote Power and Studer Innotec
Global UV-LED Market Size 2018: Semileds, Philips Lumileds, Crystal IS and DOWA Electronics
Global Nuclear Magnetic Resonance Spectrometer (NMR) Market Growth by 2023: Anasazi, Spinlock, Nanalysis and Magritek
United States Automotive Collision Repair Forecast Market 2018-2023: Valeo, Denso, Hyundai Mobis, Axalta, Magna and PPG Industries
Global Solder Ball Market Growth Outlook by 2023: MKE, DS HiMetal, YCTC and Nippon Micrometal
Global Anticoagulants Market Forecast 2018-2023: Bayer, Boehringer Ingelheim, Johnson & Johnson and Genentech (Roche)
Global LIMS Consumption Market Growth by 2023: Thermo Fisher, LabVantage Solutions, STARLIMS Corporation and LabWare
Global Process Gas Compressor Market Growth by 2023: ARIEL, Burckhardt, GE and Dresser-Rand
Global Uninterruptible Power Market Growth by 2023: Angid, Baykee, Jeidar, SORO Electronics and Stone
Global Procalcitonin Market Growth by 2023: BBI Solutions, Roche Diagnostics, HyTest and BioMerieux
Global Hair Extension Sales Market Size, Share 2018: Anhui Jinruixiang, Xuchang Penghui, Ruimei and Godrejcp
Global Veterinary Ultrasound System Market Growth by 2023: Kaixin Electric, Esaote, Mindray, Hitachi Aloka and Samsung Medison
Global Helium Mass Spectrometer Leak Detector Market Growth Outlook by 2023: Edwards Vacuum, Agilent, INFICON, Leybold and Pfeiffer Vacuum
Global Automotive Seat Heater Market Size 2018: ACTIVline, Panasonic, Gentherm, Kongsberg and I.G.Bauerhin
Global Oil Tank Trailer & Semi-trailer Market Forecast 2018-2023: CIMC, Great Dane, Schmitz Cargobull and Wabash National
Global External AC-DC Power Supply Market Growth(CAGR) by 2022: Acbel Polytech, Flextronics, Mean Well and FSP Group
Global Aircraft Placards & Signs Market Growth by 2023: Champion America, Biggles Labelling, Madelec Aero and Precision Graphics
Global Lignin Products Market Growth Outlook by 2023: Domtar, Borregaard LignoTech, Tembec(Rayonier Advanced Materials) and KMT Polymers
COPYRIGHT - 2017 JOURNALISM DAY