Saudi, Russia Boost Oil Price: Bet On Leveraged ETFs
Zacks Investment Research | May 14, 2017 10:06PM ET
Oil prices, which were under immense pressure from higher U.S. output and increased inventories, jumped more than 3% at the time of writing after the world's two top oil producers agreed to extend their production cuts for nine more months.
Saudi Arabia and Russia, which together control a fifth of global supplies, are at the forefront to extend the Organization of the Petroleum Exporting Countries (OPEC) output cut deal from the first half of 2017 to the end of the first quarter of 2018 to rein in the supply glut and stabilize the market. According to them, extending the curb at already agreed-upon volumes would bring global inventories to the five-year average. As per the International Energy Agency (IEA), demand will significantly exceed production if OPEC and its partners extend their cuts into the second half of the year.
OPEC, which accounts for one-third of the global output, Russia and other producers originally agreed to curb production by 1.8 million barrels per day in the first half of 2017, with a possible six-month extension (read: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.