Funds-Up

Rising geopolitical risks Geopolitical risk has risen due to the recent missile attack between Iran and Pakistan, which could increase instability in the Middle East if it escalates, as both countries are unofficial nuclear powers. However, the overall risk of escalation is relatively low given that the attacks were targeted at terrorist strongholds, there was no significant civilian casualties, and trade between the two countries has resumed. Additionally, the conflict between Israel and Palestine continues as the U.S. seeks to stabilize risks in the region. Crude oil inventory changes According to a report from the US Energy Information Administration (EIA), crude oil inventories in the US declined more than expected, which stimulated oil prices. In particular, extreme cold in North Dakota disrupted crude oil production and pipeline outages caused supply disruptions. These issues are expected to accelerate the decline in crude oil inventories in the near term, which will also affect ...

Analyzing the causes of the oil price decline Recently, the price of crude oil has been on a continuous downward trend. One of the main reasons for this phenomenon is the lack of market reaction to OPEC+'s decision to cut production. This situation continued even after the decision to cut production, which led to an increase in technical selling, as OPEC+'s decision failed to have a significant impact on the market. In addition, concerns about oversupply due to increased US crude oil exports also contributed to the decline in crude oil prices. The U.S. exports about 6 million barrels of crude oil per day, which led OPEC+ members to give up more market share as part of the supply reduction agreement. Economic conditions and falling oil prices The current state of the global economy is also contributing to the decline in oil prices. The global economy is in a downturn due to rising interest rates, which is having a negative impact on both consumers and businesses. Furthermore, th...

 How are the decisions of the world's largest oil producers, Saudi Arabia and Russia, to cut production affecting international oil prices? Following the announcements by the world's major oil producers to cut supply, international oil prices have been on the rise. The decisions by Saudi Arabia and Russia, in particular, have exceeded market expectations and pushed international oil prices, which were already moving at high levels, to the next level. Changes as oil prices rise Saudi Arabia and Russia's decision to cut oil supply immediately impacted international crude oil prices. The futures price of WTI crude oil rose to $86.69 per barrel, while the futures price of North Sea Brent crude soared to $90.04 per barrel. Production cuts extended for longer than expected Originally, the market expected the Saudi and Russian cuts to be extended for only one month, but in fact, the countries voluntarily extended their supply of petroleum coal for up to three months. Reduced daily...