Crude came under some downward pressure mid-week from data showing another build in US crude stocks, but did not yield much ground. It was back under the influence of fundamentals and the fundamentals remain strong. Front-month May ICE Brent futures contract began above $70 Monday and expired comfortably above that psychologically important level Thursday, in a week shortened by the Easter holiday in several parts of the world.
Hawkish comments around the fate of the OPEC/non-OPEC supply cuts beyond the December 2018 expiration of the current agreement brought the bulls back out in full force. The prospect of a watershed agreement to keep Russia aligned with OPEC in its supply-management strategy for the next decade or two promises a whole new era in the oil market.
Saudi Crown Prince Mohammed Bin Salman, a powerful voice on the kingdom’s energy policy, told Reuters in an interview in New York March 26 that Saudi Arabia and Russia were “working to shift from a year-to-year agreement to a 10- to 20-year agreement” on coordinating oil supply.
The comment was in line with ongoing efforts within OPEC to institutionalise its collaboration with the 10 non-OPEC producers led by Russia, forged at the end of 2016. Saudi Energy Minister Khalid al-Falih, current OPEC President Suhail al-Mazrouei and Secretary-General Mohammed Barkindo have alluded several times in recent months to a new, more enduring framework of cooperation with the non-OPEC producers. However, MBS’ words, and the reference to a 10- to 20-year timeframe, lent more gravity to the picture of the evolving OPEC and non-OPEC relationship.
An “exit” from the supply cuts, it appears, is no longer in the line of sight. Several producers in the pact have suggested a six-month extension beyond December, Iraqi oil minister Jabbar al-Luaibi told an industry conference in Baghdad Wednesday. Barkindo, speaking at the same event, said six more countries had expressed “solidarity” with the OPEC/non-OPEC efforts to restrain supply, though he did not identify them.
Saudi Arabia’s Al-Falih had hinted earlier this month that the OPEC/nonOPEC production cuts could go beyond December 2018. The first quarter of a year typically sees a build in oil inventories, as a result of which, lifting the curbs in Q1 2019 would not be a good idea, he said in a Bloomberg interview.
Sticking with a degree of supply restraint and cementing a framework that enables active management by 24 or more producers is the obvious way forward to preserve a hard-earned equilibrium in the oil market, and one that may remain fragile for a while. Is OPEC going to become “super-OPEC”? It already has, in our view, and the label doesn’t really matter.
Meanwhile, Baker Hughes reported a drop of seven in the number of oil rigs drilling in the US to 797 in the week to March 29, rekindling doubts over the shale sector’s projected resurgence in 2018.
Yemen’s Houthi rebels resuming firing of missiles into Saudi Arabia, growing fears over the fate of the Iran nuclear deal at the hands of a belligerent US administration, sliding Venezuelan output and geopolitical crimps on production in Nigeria and Libya are all conspiring to keep the oil market on tenterhooks. The second quarter promises to be anything but a seasonal lull.
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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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