As it does every November, OPEC is convening once again in Vienna. In the past, such meetings have been more prosaic affairs, but of late, they have taken utmost significance. The current OPEC supply freeze deal (brokered together with Russia and several other important Non-OPEC countries) was formally detailed at last year’s meeting. The main question at this year’s meeting is: will OPEC extend the cuts beyond their current March 2018 end-date?
All signs point to yes. A draft agenda published for the November 30 meeting allocates three hours for discussion on the matter. Last year’s discussions reportedly stretched into the wee hours of the morning. That is a good indication that things are expected to proceed smoothly, if they haven’t already been locked in already. This is despite geopolitical tensions between several Middle Eastern OPEC countries, lining up into a pro-Saudi Arabia and pro-Iran block. Language by various OPEC oil ministers over the past two weeks indicate support for continuing the freeze, viewing it even as necessary. Oddly, Saudi Arabia has been the cagiest so far, but this may be posturing to make more of an impact.
The wider oil industry expects thinks an extension is guaranteed. They would seem to be right. What is likeliest to happen is that the current supply freeze gets extended by 9 months to December 31, 2018. The existing supply quotas will be maintained, but not deepened. It is likely to Libya and Nigeria will have to agree to some cuts, given that they were exempt from the last round. The market will view this as enough to maintain crude prices at a floor of US$60/b; breaking beyond this range would require deeper concession than OPEC is willing to do, out of the question if you follow its language so far. So good, but not great. Given the length of the oil downturn, however, that’s not a bad position to be in.
Winners & Losers of an OPEC extension for another 9 months
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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