Oil Prices on December 2nd

oil prices december2 Francisco Neri Bonilla.png

Oil prices continue downward trend

At this time (10.30 hours GMT+1), West Texas Intermediate (WTI) crude oil futures change to $41.51 per barrel, 0.81 percent lower, while Brent is traded at $44.09 per barrel, 0.79 percent below.

Market is skeptical due to OPEC meeting on this Friday

“The market is a little anxious and unstable, but is still cautious,” said Matt Smith, analyst at Clipper Data. “Friday is going to be an important day for oil market,” as that day the OPEC will begin a meeting to decide “whether to cut production in order to reduce global glut,” he added.

US job figures will be revealed on Friday, which may indicate if the Federal Reserve will Xnally decide to increase interest rates two weeks from now. If interest rates get increased, the dollar becomes more expensive for those who use other currencies and require green bills to buy crude. Oil market “clearly has its doubts whether they will adopt production restraint to make room for a likely 2016 increase in Iranian production or to rebalance the market in support of higher prices,” said Tim Evans,

analyst at Citi.

Worries are focused on US oil Stocks

Investors are worried by possible bad news from the US oil stock report if they show an increase.

Japanese major JX agreed to merge with the third Japanese oil company

Japanese major JX Holdings has entered a merger agreement with its competitor TonenGeneral Sekiyu, in a new restructuration of the oil sector in Japan after the continued fall of oil prices. This transaction takes place two weeks after the merger between Idemitsu Kosan and Showa Shell Sekiyu, giving rise to the second major company of the sector in the Asian country by sales volume, with 7.6 yen trillion (€58.5 billion).

Francisco Neri Bonilla

Author: Francisco Neri Bonilla

Francisco Neri is an entrepreneur and a proven specialist in operations. With extensive background launching and managing different kinds of businesses he has more than 15 years of experience in delivering integrated marketing, logistics and digital solutions to multinational clients and companies. Francisco has extensive operating experience in different industries including corporate advertising and corporate communications, marketing solutions, specialized publications and high-profile events design and production. Francisco graduated as B.A. in law at UCAB.

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