Oil trading and the most important influencing economic events this week from January 2 to 6

Oil futures closed trading last Friday, which is considered the last session of 2016, incurring limited losses. Oil trading in 2016 recorded its largest annual gains since 2009. These strong gains come on the back of the conclusion of the OPEC global agreement between major oil producers inside and outside organization, which aims to reduce production levels.

During last Friday’s trading on the London Stock Exchange, Brent contracts “March delivery” fell by 3 cents, or less than 0.1%, to trade at $56,822 per barrel, approaching its highest level in 17 months, which it recorded on December 12 at Price: $57.89.

Over the course of last week’s trading on the London Stock Exchange, Brent crude futures rose by $1.66, or 2.9%, and futures contracts have risen this year on the London Stock Exchange by 52%, the highest since 2009.

As for the NYMEX Stock Exchange in New York, crude oil contracts for “February delivery” fell at the close of trading on Friday, at a value of 5 cents, or 0.1%, to trade the barrel at a price of 53,022 dollars, approaching its highest level in a year and a half at 54.51 dollars, which it had recorded during Trading on December 12th.

Over the course of last week’s trading, oil futures contracts rose on the NYMEX by 70 cents, or 1.3%, and futures contracts recorded during this year a gain of 45%, the highest since 2009.

In the last months of this year, OPEC was able to conclude a global agreement for the first time in 15 years to reduce production levels between oil producers inside and outside the organization, with a total global reduction of about 1.8 million barrels per day, and the agreement will enter into effective implementation at the beginning of January.

However, concerns still surround the oil trading markets, especially after the increasing expectations that Libya and Nigeria will pump more of their production, as Libya and Nigeria are among the countries excluded from the agreement.

On the other hand, Baker Hughes Oil Services Company said that American drilling and exploration companies are expanding their activities and raising the number of drilling rigs for the ninth week in a row by 2 rigs last week, bringing the total number of rigs at 525 rigs, the highest level in nearly a year, which exacerbates fears. From continuing the oversupply crisis in spite of the reduction agreement.

Many economic analysts and experts have given many warnings as they said that the recent improvement in oil prices may be counterproductive because it will stimulate American drilling and exploration companies to increase their production in order to gain more profits.

And in a poll conducted by Reuters last Thursday, it showed that oil prices will gradually reach the $60 per barrel barrier by the end of 2017, and this is an unexpected rate for many due to the strong gains of the US dollar against many currencies and the increase in US production of its shale oil production, in addition to To the possibility of some countries not being committed to implementing the reduction agreement.

As for gasoline contracts for the month of February, on the Nymex Stock Exchange in New York, it recorded a decrease of 0.8 cents, or 0.5%, to reach the price of a gallon at $1.670, during trading last Friday. The past three years is the highest since 2009.

While heating oil “February delivery” achieved gains by 0.5%, rising by 0.8 cents, to trade at the level of $1.728 per gallon, and over the course of 2016, it rose by 55%, the highest since 2007.

While natural gas contracts “for February delivery” decreased by 7.8 cents, or about 2%, to trade at $3.724 per million British thermal units, and during 2016, natural gas contracts achieved gains by about 59.4%, which is the highest in 11 years, and natural gas contracts rose during December at 122% due to severe cold weather in most parts of the United States.

This week, the United States will announce several weekly data on oil inventories and refined products, on Wednesday and Thursday, and investors will wait for statements from oil producers in the world to know the extent of the producers' response and commitment to implementing the cut agreement.

oil trading

oil trading

And about the most important events expected for the oil trading markets during this week

Monday 2 January

Oil markets will continue to be closed for the New Year holidays.

Wednesday 4th January

The American Petroleum Institute is to release unofficial data on US oil inventories for the past week.

Thursday January 5th

The US Energy Administration will release official data on oil inventories and derivative products for the past week, in addition to issuing a detailed report on natural gas supplies.

Friday January 6th

Baker Hughes Oil Services will announce the weekly data on the number of US drilling rigs.

Mohamed Abdel Khaleq
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