There has been an ongoing crisis in the energy field from the very beginning of the year 2016 due to excess supply of oil in the global market. The price of crude kept falling like a heavy stone in the market breaking critical support levels in the market. But the market found a solid ground after OPEC put a cap in the production of oil in the global market. Most of the professional oil investors in the Australian trading community made a decent profit by riding the long bullish rally of the price of oil in the global market. According to the leading oil researchers in the global market, the price of crude might rally higher in the near future as OPEC will most likely to tighten the production of oil in the global market.
Crude settles above $50: The price of crude settles above the 50 $ mark in the global market prior to the closing of the week. Most of the leading oil investors in the Australian trading community made a decent profit by going long in the crude market as the probability of the extension of oil production cap by OPEC intensified. This has also created unique scope for the professional traders in the options trading industry to make a profit in the global market. According to the New Work Mercantile Exchange the crude futures gained near about 98 cents in the global market whereas the price of Brent gained near about 0.97 cents and traded at 53.48 a barrel. According to the leading traders in the Australian options trading industry, the price of oil might rally furthermore in near future as OPEC is most likely to limit the current production of oil further more in the global market. An active extension of the current oil cap production will confirm the establishment of a medium term bullish trend in the price of oil.
The sentiment of the leading oil producers: Most of the leading oil producing countries has appreciated the decision of OPEC to bring stability in the price of oil. Upon the implementation of oil cap production in the market the professional traders in the Australian option trading industry made a decent money by riding the long bullish rally in the price of oil. Such strong surge in the price of oil made options trading pretty much easier as the market sentiment for the oil price remained strongly bullish both technically and fundamentally.
Countries like Saudi Arabia and Kuwait has already limited their current production of oil more than they promised and they also stated that they will reduce their current production rate further more in near future to bring stability in the nervy field. On the other hand, the active number of oil rigs in the U.S economy is now 720 which was only 12 in the very beginning of the year 2016.Such a dramatic rise in the active number of oil rigs has created a massive fear into the mind of leading oil investors as the active production from those oil rigs will create strong bearish pressure in the global market.
Summary: The price of crude is most likely to rally higher in the global market in near future as OPEC will further extend their production cap program. Since most of the leading oil producers have appreciated OPEC decision regarding this oil cap program we will see active participation from leading oil producers like Saudi Arabia and Kuwait to bring stability in the price of oil. However, the active number of oil rigs in the U.S economy has been the cause of major fear for the Aussie oil investors since production oil from 720 oil rigs will create the oversupply problem again in the global market. Considering all the parameters the overall sentiment for the oil industry still remains bullish for the upcoming week.